Effective January 1, 2016, the following changes to the life insurance benefit will take effect for all full time faculty/staff, with the exception of members of the Teamsters Local 8 bargaining unit:

  1. The University-paid life insurance benefit will be increased from $5,000 to $50,000 at no cost to the employee.

  2. If you retire from Penn State by 12/31/2020 you will continue to carry a $5,000 term life insurance policy benefit into retirement at no cost to you. If you retire after 12/31/2020, you will not be eligible to carry this coverage into retirement. However, you still may be able to convert some or all of your coverage through Prudential. See "Continuing Coverage After Leaving Penn State" below.

  3. HR 53 is being amended to eliminate the lump sum death payment due to the increase in the life insurance benefit.

University-Paid Basic Term Life Insurance - Faculty & Staff

Regular full-time faculty and staff are covered by a University-paid group-term life insurance policy in the amount of $50,000. Coverage is effective on the date of appointment. Coverage is issued by the Prudential Insurance Company of America (Prudential). The group policy number is 35200.

University-Paid Basic Term Life Insurance - Teamsters' Members

Regular full-time faculty and staff are covered by a University-paid group-term life insurance policy in the amount of $5,000. Coverage is effective on the date of appointment. Coverage is issued by the Prudential Insurance Company of America (Prudential). The group policy number is 35200.

Postdoctoral Employees

Postdoctoral employees have a one time opportunity at hire to purchase group term life insurance equal to your stipend.  The insurance amount will be rounded to the nearest thousand dollars, and will not exceed $50,000.   

Employee-Paid Age-Graded Optional and Dependent Term Life Insurance

As a new employee, you may elect coverage up to three times your salary (rounded to the nearest $1,000) without providing any medical history or proof of good health. The maximum amount available during your first calendar year is $150,000. You may be able to select additional coverage if you provide proof of good health satisfactory to Prudential. Please contact the Office of Human Resources for additional information.  

If you would like assistance in estimating how much life insurance coverage you may need, please use the Prudential Life Insurance Needs Estimator: http://www.prudential.com/EZLifeNeeds

Once you are enrolled in the age-graded optional employee term life insurance program, during the annual open enrollment period, you may increase your age-graded optional employee term life insurance coverage by one times your salary, without providing medical history or answering health questions. The maximum amount may be increased each year up to the lesser of eight times salary or $1.5 million.

After age 64, you will not be able to increase the amount of your optional employee term life insurance except that it will continue to increase as your salary increases, subject to any amount limitations due to age, as long as you are actively at work. Original amounts of insurance are reduced as follows:

Reduction Rates
Age% Reduced % Maintained
65 35% 65%
70 50% 50%
80 75% 25%

Spousal Age-Graded Life Insurance Coverage

As a new employee, you are able to elect age-graded dependent term life insurance for your spouse up to $20,000, without providing proof of good health.  Any amount selected over $20,000 requires a proof of good health form to be completed.  A proof of good health form will be sent to you after employee benefits receives the dependent enrollment form.  Spousal coverage cannot exceed 100% of the age-graded optional employee term life insurance coverage amount.

Dependent Term Life Insurance Coverage

As a new employee, you are able to elect $5,000 of term life insurance coverage for your dependent children, (up to age 26).  Proof of good health is never required for child coverage.  The cost is $1.20 per month, regardless of the number of children covered.

How Do I Enroll or Make Changes

As a new employee, and during subsequent open enrollment periods, employee age-graded life insurance enrollment and changes will be done through ESSIC, the Employee Self Service Information Center. At any other time during the year, please complete the employee enrollment/change forms below.

Please Note: Enrollment/Change forms should be returned to Employee Benefits. Proof of Good Health forms should be sent directly to Prudential.

If you wish to add coverage or request increased coverage for a spouse or children to your age-graded term life insurance, at any time other than as a new employee, you must complete the following form. 

Beneficiary Designation

To be sure that any benefits are paid correctly, you must name your beneficiary. You may change your beneficiary at any time and it is very important that you keep your beneficiary designations up-to-date as your life changes.

To make a beneficiary change you will need to complete the following form:

Premiums

Employee Rates
Age RangeBiWeeklyMonthly
Contributions (per $1,000 of coverage)
Less than 25 $.0083 $.018
25-29 $.0102 $.022
30-34 $.0134 $.029
35-39 $.0152 $.033
40-44 $.0185 $.040
45-49 $.0268 $.058
50-54 $.0438 $.095
55-59 $.0725 $.157
60-64 $.1108 $.240
65-69 $.2137 $.463
70 and above $.3462 $.750
Spouse Rates
Age RangeBiWeeklyMonthly
Contributions (per $1,000 of coverage)
Less than 25 $.009 $.02
25-29 $.011 $.024
30-34 $.015 $.032
35-39 $.0165 $.036
40-44 $.0205 $.044
45-49 $.0295 $.064
50-54 $.048 $.104
55-59 $.0795 $.172
60-64 $.122 $.264
65-69 $.2345 $.508
70 and above $.3805 $.824

How To Calculate the Cost of Insurance Coverage

Annual Salary X Coverage Amt (1 times your salary up to a max of 8 times) = Insurance Coverage Amt

Insurance Coverage Amount /1000 (per $1000 of coverage) x rate = Monthly Premium Amount

Example: Annual Salary is $51,000

Coverage Amount – 5 times Salary

$51,000 x 5 = Insurance Coverage Amount of $255,000

Age = 44

$255,000/1000 (per $1,000 of coverage) x .044 (2012 Rate Chart) = $11.22

Continuing Coverage After Leaving Penn State

When you end your employment with Penn State, either at retirement or termination, you may be able to convert or port your life insurance coverage. To learn the difference between conversion and portability, click here.

You may be eligible to convert your basic and optional coverage if you are a participant in the Level Premium Plan OR convert your basic term life insurance coverage and port or convert your optional term life insurance coverage if you are a participant in the Age Graded Plan. To be eligible to port coverage, you must have been actively at work on the date employment ended and not retiring.

You must complete an application and apply for these options within 31 days of your coverage termination.

To obtain an application, please contact Prudential at 1-800-778-3827. Please provide the contract number – 35200 when calling. If you are using a telecommunications device for the hearing impaired (TDD), please call 1-800-496-1214. Representatives are available to assist you Monday through Friday between 8:00am and 8:00pm Eastern Time.

Portability of Coverage

To qualify for preferred rates to port your coverage, you must submit proof of good health satisfactory to Prudential. Standard rates do not require proof of good health.

Portability Rates Employee and Dependent Spouse
Age RangePreferredStandard
Contributions (per $1,000 of coverage)
Under 30
$0.099 $0.134
30-34 $0.111 $0.149
35-39 $0.137 $0.185
40-44 $0.200 $0.269
45-49 $0.300 $0.406
50-54 $0.500 $0.675
55-59 $0.852 $1.150
60-64 $1.405 $1.896
65-69 $2.389 $3.226
70-74
$3.869 $5.224
75-79 $6.451 $8.708
Dependent Term Life Monthly rate per thousand for all children covered $0.220

Additional Resources 

Forms

Basic Term Life, Optional Employee Term Life, and Dependent Term Life Insurance coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, 751 Broad Street, Newark, NJ 07102.  The Booklet-Certificate contains all details, including any policy exclusions, limitations, and restrictions, which may apply. 

(c) 2015 Prudential Financial, Inc. and its related entities.  Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

 

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