Life Insurance
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 Unum and includes a Travel Assistance benefit as detailed below. The group policy number is 605923 202.
University-Paid Basic Term Life Insurance - Technical Service Employees
Technical Service Union members are covered by a University-paid group-term life insurance policy in the amount of $25,000. Coverage is effective on the date of appointment. Coverage is issued by the Unum and includes a Travel Assistance benefit as detailed below. The group policy number is 605923 204.
Penn State University Police Officers Association (PSUPOA)
Members of the Penn State University Police Officers Association (PSUPOA) are covered by a University-paid group-term life insurance policy at $125,000.
Postdoctoral Appointments
Postdoctoral appointments 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 $300,000. You may be able to select additional coverage if you provide proof of good health satisfactory to Unum. Please contact Human Resources for additional information.
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.
Coverage is issued by the Unum and includes a Travel Assistance benefit as detailed below.
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:
| 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 must be selected in $10,000 increments, up to a maximum of $250,000, and cannot exceed 100% of the age-graded optional employee term life insurance coverage amount.
Dependent Child Life Insurance Coverage
Employees can elect $5,000 or $10,000 or $20,000 of term life insurance coverage for your dependent children. Proof of good health is never required for child coverage.
One enrollment covers all dependent children under the age of 26. When all dependents are over age 26, you will need to waive coverage to stop the payroll deduction.
The monthly or bi-weekly cost for coverage is outlined within the Dependent Child Life chart below.
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 Workday. At anytime, employees may also make changes with evidence of insurability, again, through Workday.
2024 Premiums
| Age Range | BiWeekly | Monthly |
|---|---|---|
| Less than 25 | $0.011 | $0.023 |
| 25-29 | $0.013 | $0.028 |
| 30-34 | $0.017 | $0.037 |
| 35-39 | $0.019 | $0.042 |
| 40-44 | $0.024 | $0.051 |
| 45-49 | $0.034 | $0.074 |
| 50-54 | $0.056 | $0.121 |
| 55-59 | $0.092 | $0.200 |
| 60-64 | $0.141 | $0.305 |
| 65-69 | $0.271 | $0.588 |
| 70 and above | $0.440 | $0.953 |
| Age Range | BiWeekly | Monthly |
|---|---|---|
| Less than 25 | $0.011 | $0.023 |
| 25-29 | $0.013 | $0.028 |
| 30-34 | $0.017 | $0.037 |
| 35-39 | $0.019 | $0.042 |
| 40-44 | $0.024 | $0.051 |
| 45-49 | $0.035 | $0.075 |
| 50-54 | $0.056 | $0.121 |
| 55-59 | $0.093 | $0.201 |
| 60-64 | $0.142 | $0.308 |
| 65-69 | $0.274 | $0.593 |
| 70 and above | $0.444 | $0.962 |
| Coverage Amount | Bi-Weekly | Monthly |
|---|---|---|
| $5,000 | $0.55 | $1.20 |
| $10,000 | $1.10 | $2.40 |
| $20,000 (faculty and staff) | $2.21 | $4.80 |
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 .040 (Employee Rates Chart for monthly) = $10.20
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. Learn the difference between conversion and portability.
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. Per life insurance booklet page 36 (see below); you can apply for portable coverage when you retire.
You must complete an application and apply for these options within 31 days of your coverage termination.
To obtain an application, please contact Unum at 1-866-220-8460, Monday - Friday 8:00 am and 8:00 pm Eastern Time.
Portability of Coverage
To qualify for preferred rates to port your coverage, you must submit proof of good health satisfactory to Unum. Standard rates do not require proof of good health.
| Age Range | Preferred | Standard |
|---|---|---|
| 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
- Life and AD&D Certificate of Coverage (All Employees)
- Level Premium Plan Certificate of Coverage (Technical Service Employees)
- Life Insurance Guaranty Association Notice
- Unum Travel Assistance Brochure
- Unum Travel Assistance Wallet Card
Basic Term Life, Optional Employee Term Life, and Dependent Term Life Insurance coverages are issued by The Unum Insurance. The Booklet-Certificate contains all details, including any policy exclusions, limitations, and restrictions, which may apply.