Human Resources
Life Insurance
The State of Iowa's life insurance plan provides your family financial protection in the case of your death. If you are a full-time employee, the life insurance plan provides you with a basic term life insurance benefit at no cost to you. In addition, you have an opportunity to purchase additional (supplemental) life insurance coverage at very economical group rates through payroll deduction.
Supplemental Life Insurance Premiums
AFSCME, AFSCME Judicial, Judicial Non-Contract, PPME, and Non-Contract (Non-Judicial)
UE/IUP
2007 Life Insurance Information
For information and forms on the life insurance coverage effective in 2007, click here.
Type of Insurance Available
The State of Iowa insurance benefit is term life insurance. Term insurance is a life insurance policy that pays only if you die during the term of the policy, for example, while you are actively employed by the state. At the end of the term, the policy terminates.
Provider
Life insurance is provided through a policy issued to the State of Iowa by The Hartford Life.
Eligibility
You are eligible for the state's life insurance coverage if you are a probationary or permanent employee who works 30 hours or more per week or you are a part-time employee of the General Assembly.
NOTE: Life insurance coverage is not available for Regents employees.
You must complete a waiting period (see table below) before your insurance becomes effective.
| If You Are: | Your Coverage is Effective: |
A new employee | The first day of the calendar month following the completion of one month of continuous service in an eligible class. |
| A part time employee of the General Assembly | The first day of the calendar month following the completion of one month of continuous service in an eligible class. |
| A General Assembly member | The January 1st following the date of election. |
Coverage is effective as long as you remain in an eligible class as defined in the group policy.
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Enrollment for Basic Life Insurance
You are automatically enrolled for basic life insurance coverage. Coverage is effective the first of the month after one month of employment. You should complete a Life Insurance Enrollment form and give it to your Personnel Assistant as soon as possible.
The life insurance enrollment form has room for you to designate one primary and one contingent beneficiary. If you want to designate more than one primary or contingent beneficiary, complete a separate Beneficiary Designation form and attach that form to the enrollment form.
Make a copy of the completed form(s) for your records and give the completed form(s) to your Personnel Assistant.
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Coverage
Basic Life Insurance Coverage
The State of Iowa provides basic life insurance in the amount of $20,000 to each eligible employee.
Supplemental Life Insurance Coverage
In addition to the basic life insurance coverage, you have an opportunity to elect supplemental life insurance at affordable group rates. The maximum amount of supplemental life insurance that you may purchase depends upon your bargaining status.
AFSCME, AFSCME Judicial, Judicial Non-Contract, PPME and Non-Contract |
UE/IUP |
|
| Maximum Amount of Supplemental Life Insurance Available | $50,000 |
$40,000 |
Basic and supplemental life insurance coverage amounts begin to decrease starting at age 65.
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Cost
Basic Life Insurance
The state pays the entire premium for your basic life insurance coverage (except for part-time General Assembly members).
Supplemental Life Insurance
You can purchase supplemental (additional) life insurance through payroll deduction. This plan allows you to purchase supplemental life insurance in $5,000 increments. The maximum amount of supplemental life insurance available varies by bargaining unit.
Supplemental Life Insurance Increments |
|
AFSCME, AFSCME Judicial, Judicial Non-Contract, PPME and Non-Contract |
UE/IUP |
$5,000 |
$5,000 |
$10,000 |
$10,000 |
$15,000 |
$15,000 |
$20,000 |
$20,000 |
$25,000 |
$25,000 |
$30,000 |
$30,000 |
$35,000 |
$35,000 |
$40,000 |
$40,000 |
$45,000 |
|
$50,000 |
|
You are responsible for 100% of the cost of supplemental life insurance. Supplemental life insurance premiums are based on your age and the amount of coverage you elect. You can pay the premium on a pretax or post-tax basis.
Supplemental Life Insurance Premiums
AFSCME, Judicial AFSCME, Judicial Non-Contract, PPME and Non-ContractUE/IUP
You can enroll for any amount of supplemental life insurance available for your employee class within the first 30 days of eligibility for life insurance coverage. This coverage is effective once you satisfy any applicable waiting period.
If you do not enroll for supplemental life insurance within 30 days of eligibility you will not be able to enroll for supplemental coverage until the annual enrollment and change period unless you have a qualified life event during the plan year. In either event, you will be required to provide evidence of insurability by completing and submitting the Personal Health Application form to Hartford for their review and approval. Coverage will become effective following Hartford's approval.
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Qualified Life Event
When you enroll in supplemental life insurance, your coverage election remains in effect to the end of the calendar year and you cannot change (increase or decrease) your life coverage until the next enrollment and change period unless you experience a qualified life event and the benefit change you request is consistent with the event.
The life events matrix has detailed information on your ability to change benefits as a result of a qualified life event.
Increasing Supplemental Life Insurance CoverageYou can only add coverage if you have a qualified life event or during an annual enrollment and change period. Any increase in coverage after your first 30 days of employment requires that you provide evidence of insurability to Hartford and be approved for the coverage by Hartford.
When you apply for supplemental life insurance coverage after your initial eligibility period, you must complete the Personal Health Application form and the Application for Supplemental Term Life Insurance form. Mail the Personal Health Application form directly to Hartford at the address provided on the form and give the Application for Supplemental Term Life Insurance form to your Personnel Assistant. Hartford will have to approve any additional coverage before it can become effective.
Decreasing Supplemental Life Insurance CoverageYou can only decrease your life insurance coverage if you have a qualified life event or during the annual enrollment and change period. If you decrease your coverage, and later decide to increase your coverage, you will only be able to increase your coverage during the annual enrollment and change period unless you have a qualified life event, and you will have to provide evidence of insurability to Hartford. Hartford will have to approve any coverage that you later request before it can become effective.
Complete the Application to Decrease Supplemental Term Life Insurance and submit the form to your Personnel Assistant.
Things to consider
If you're trying to determine how much insurance to purchase, here are a few factors to consider. This benefit is meant to help those who would suffer financially if you weren't there to help pay the bills. Don't forget to include:
- Mortgage, debts, food, clothes, and utility bills (what portion of these are paid from your salary)
- Housekeeping bills (if you contribute to the running of the household by performing household tasks or running errands)
- Extra child care expenses (to give your spouse some time off)
- Savings for children's education
- The cost of a funeral
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Accidental Death and Dismemberment
An amount equivalent to your basic and supplemental life coverage is provided for accidental death and dismemberment (AD&D). In addition, the policy provides for an additional payment to your beneficiaries if you lose your life in a motor vehicle accident while wearing a seat belt or riding in a seat protected by an airbag. See the State of Iowa Group Life Insurance book for more information about this benefit.
Imputed Income
If your total (basic and supplemental) group life insurance coverage is over $50,000 and you pay for supplemental life insurance on a pretax basis, you will have imputed income reported to the IRS. The value (determined by a cost table from the IRS) of the life insurance over $50,000 will be reported as imputed income and may be subject to taxes. The monthly value increases with age from $.05 per $1,000 of insurance for those under age 25 to $2.06 per $1,000 for those ages 70 and over.
Calculating Imputed Income and Life Insurance PremiumsImputed income is calculated based on your age as of December 31 of the current calendar year. Imputed income is assessed by the number of $1,000 increments of coverage that are over $50,000. The IRS determines imputed income rates; rates by coverage level are provided in the following table.
Life insurance premiums are calculated based on your age at the beginning of the month. In the
case of an individual who is between the ages of 40 and 44 years old, the 2008 monthly premium for $50,000 of supplemental coverage is $3.86 per month and imputed income is $2.00.
Total Life Insurance Coverage Monthly Imputed Income |
||||
Age |
$55,000 |
$60,000 |
$65,000 |
$70,000 |
Under 25 |
$0.25 |
$0.50 |
$0.75 |
$1.00 |
25 - 29 |
$0.30 |
$0.60 |
$0.90 |
$1.20 |
30 - 34 |
$0.40 |
$0.80 |
$1.20 |
$1.60 |
35 - 39 |
$0.45 |
$0.90 |
$1.35 |
$1.80 |
40 - 44 |
$0.50 |
$1.00 |
$1.50 |
$2.00 |
45 -49 |
$0.75 |
$1.50 |
$2.25 |
$3.00 |
50 - 54 |
$1.15 |
$2.30 |
$3.45 |
$4.60 |
55 - 59 |
$2.15 |
$4.30 |
$6.45 |
$8.60 |
60 - 64 |
$3.30 |
$6.60 |
$9.90 |
$13.20 |
65 & Over |
N/A |
N/A |
N/A |
N/A |
Imputed Income Calculation Examples
The following link contains examples of how imputed income is calculated.
To see how imputed income appears on your electronic warrant, click the on following link.
Imputed income on the electronic warrant
Life Insurance Beneficiary
Please be sure your beneficiary information is current. To change your beneficiary designation, complete a new Beneficiary Designation form and return it to your Personnel Assistant. Your beneficiary designation must be submitted to your Personnel Assistant before it becomes effective.
Living Benefit Option
If you are diagnosed with a terminal illness and your life expectancy is twelve (12) months or less, you may be able to have up to 75% of your life insurance benefits paid to you while you are still living. Proceeds can be paid in a lump sum or in monthly installments. See the State of Iowa Group Life Insurance book for more information about this benefit.
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Continuation of Life Insurance
Portability
When you leave state employment prior to normal retirement age or you are no longer eligible for life insurance because of a reduction in your hours, you may be able to continue your life insurance through a portability provision.
You may elect to continue 50%, 75%, or 100% of your life insurance coverage (basic plus supplemental insurance). The minimum amount of life insurance that is available for portability is $10,000. If you elect to continue 50% or 75% of your life insurance coverage, you will not be able to continue the remaining amount of life insurance at a later date.
You cannot continue AD&D coverage under the portability provision. If you want to continue AD&D coverage, you can do so under the conversion provision.
You are not subject to evidence of insurability for insurance coverage issued under the portability policy.
Your Personnel Assistant will complete the employer section of the Life Insurance Portability form. You are responsible for submitting the form to Hartford and providing them with any additional information. The portability application must be received by Hartford within 31 days after the life insurance terminates or 15 days after the date the Personnel Assistance signs the application. The Hartford will not accept portability applications received more than 91 days after life insurance terminates.
Hartford Life Insurance Portability Premiums
A portability life insurance cost calculator is available to assistance you in determining your cost of continuing life insurance under the portability policy.
Portability is only available for the life insurance coverage you elected. You cannot increase the amount of supplemental life insurance when you exercise the portability option.
Portability is not available if you are entering active military service, have reached your defined retirement age or for life insurance coverage continued through conversion, waiver of premium or continuation provisions.
Life Insurance Conversion
If you are at or above normal retirement age when you leave state employment, you can continue your life insurance coverage by converting your group term life insurance to an individual whole life policy.
A life insurance conversion cost calculator is available to assistance you in determining your cost of continuing life insurance under the portability policy.
Your Personnel Assistant will complete the employer section of the Notice of Conversion Privilege; you are then responsible for contacting Hartford and submitting any required information directly to them.
Hartford Life Insurance Conversion Premiums
AD&D Insurance Conversion
You can convert your AD&D coverage. Conversion rates for AD&D coverage can be found on the AD&D Conversion Policy Information and Instructions.
Your Personnel Assistant will complete the employer section of the Enrollment Card for Conversion; you are then responsible for contacting Hartford and submitting any required information directly to them.
To File a Claim
In the event of a loss, the Personnel Assistant will complete the employer section of the Group Life Insurance Claim form and give a Beneficiary Statement to each beneficiary. Click here for instructions on completion of the life insurance claim form.
The completed Beneficiary Statement is returned to the Personnel Assistant. The Personnel Assistant will submit the entire claim, including an original death certificate, to:
Iowa Department of Administrative Services
Human Resources Enterprise
Attn: Group Life Insurance
Hoover State Office Building
Des Moines, IA 50319-0150
For More Information
For more information about your coverage, please see the State of Iowa Group Life Insurance book or contact your Personnel Assistant.
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Updated: 06/26/2008