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)

University Police have updated levels of coverage based on PSUPOA Agreement starting January 1, 2025. As a new PSUPOA employee, you can select:

• $50,000; employer paid, no imputed income tax owed on this amount.
• $200,000; employer paid, but there will be imputed income tax owed on the amount over $50,000
• Option elected as a new hire, will remain your elected amount for life PSUPOA Agreement
• If no election is made, the $200,000 employer paid with imputed income tax will be the default election selected

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

As a new employee, you will have guaranteed issuance of optional age-graded employee life insurance up to three times your salary (rounded to the nearest $1,000), meaning you will not need to provide any medical history or proof of good health. The maximum amount available during your first calendar year is $300,000. You may select a coverage greater than $300,000, but you will then need to provide proof of good health satisfactory to Unum.

If you are already enrolled in the optional employee age-graded life insurance plan, you can increase your coverage amount by 1 time your salary during open enrollment, up to a maximum of $1.5 million or 8 times your salary, whichever is less. If you did not enroll as a new hire, you may elect during open enrollment and will be required to provide proof of good health satisfactory to Unum.

Coverage is issued by the Unum and includes a Travel Assistance benefit as detailed below.

Spousal

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.

Optional Employee Life and Spousal Life Rates

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

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:

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.

Dependent Child Life Payroll Contributions

Employees will make all changes to their optional life insurance elections through Workday. New employees will be offered an ability to enroll as of their date of hire. Each open enrollment period employees will have the option to enroll, disenroll, increase, or decrease (with exception for those age 64) coverage. Additionally, employees may also make changes at anytime throughout the plan year through Workday, but enrollment or increases of coverage will require proof of good health satisfactory for Unum.

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.

• 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.