Life Insurance : Full-Time Employees
Information for: Full-Time Employees
Life insurance is provided to FIT full-time employees by The Hartford. For details about this coverage please refer the Basic Term Life Insurance and Accidental Death and Dismemberment Plan Benefit Certificate (.pdf) and the Supplemental Term Life Insurance Plan Benefit Certificate (.pdf).
Basic Term Life Insurance and Accidental Death and Dismemberment Insurance (AD&D)
Effective the first day of employment, you are automatically enrolled in Basic Term
Life Insurance and AD&D coverage at no cost to you. The coverage amounts for each
equal your base annual salary rounded up to the next multiple of $1,000, if not already
a multiple of $1,000, to a maximum coverage amount of $250,000. For example, if your
annual earnings are $64,331, your Basic Term Life Insurance and AD&D coverage amounts
are each $65,000.
Reduced Levels of Coverage
New Hires:
Employees between the ages of 70 and 74 will be covered at 65% of the amount illustrated
above, and employees aged 75 and over will be covered at 50% of the amount illustrated
above.
Current Employees:
Upon reaching age 70: On the following January 1, your coverage amount will reduce
to 65% of your base annual salary as of December 31 of the prior year, rounded up
to the next multiple of $1,000, if not already a multiple of $1,000.
Upon reaching age 75: On the following January 1, your coverage amount will reduce to 50% of your base annual salary as of December 31 of the prior year, rounded up to the next multiple of $1,000, if not already a multiple of $1,000.
When coverage is reduced, you can convert the amount you have lost to an individual policy with The Hartford without completing a medical questionnaire. For more information, please contact a benefits representative.
You must name a beneficiary for your basic term life insurance and AD&D insurance
by completing a Beneficiary Designation Form. If you elect Supplemental Term Life Insurance, the same beneficiaries will apply
for that coverage. You may update your beneficiary designation anytime by completing
the same form.
The Hartford’s Travel Assistance (.pdf) and Estate Planning and Will Preparation Services (.pdf) are also provided to you at no cost.
Supplemental Term Life Insurance
Within 31 days of your hire date, you can enroll* in the Supplemental Term Life Insurance
Plan with The Hartford, which provides term life insurance over and above the basic
term life insurance coverage and AD&D coverage provided by the college. You must
complete the Supplemental Life Insurance Election Form to elect the Supplemental Term Life Insurance coverage. You may elect Supplemental
Term Life Insurance coverage equal to one, two, three, or four times your base annual
salary, up to a maximum coverage amount of $500,000. The first $250,000 of Supplemental
Term Life Insurance elected within 31 days of your hire date is automatically approved.
Any amount that exceeds $250,000 will require the completion of a medical questionnaire,
which you would submit directly to The Hartford and is subject to their approval.
If approved, you will pay the full cost of the supplemental coverage on an after-tax
basis through payroll deductions. Once enrolled, contributions will change on an
ongoing basis when your salary changes or when you reach certain age thresholds.
You may cancel** your Supplemental Term Life Insurance Plan any time during the year
by sending a cancellation request email to a benefits representative. Your coverage will remain in effect through the last day of the pay period in which
you requested the cancellation. The policy does not allow any life insurance premiums
you’ve already paid to be refunded if you choose to cancel your coverage.
Supplemental Term Life Insurance coverage terminates when you attain age 70. You can
convert your coverage to an individual policy with The Hartford without completing
a medical questionnaire. For more information, please contact a benefits representative.
*You must be under the age of 70 to enroll in this coverage.
**You cannot convert your coverage to an individual policy if you cancel your coverage
voluntarily.
Imputed Income on Employer-Provided Life Insurance Coverage
The first $50,000 of employer-provided life insurance coverage is considered a tax-free
benefit. However, the IRS requires employers to tax employees on the IRS-determined
value of employer-provided life insurance coverage exceeding $50,000. The IRS-determined
value is called Imputed Income.
The amount of Imputed Income is calculated based on IRS Code Section 79 Uniform Premium
Table I, your age on 12/31 in the current calendar year, and the amount of employer-provided
life insurance coverage over $50,000 (includes both Basic Term Life and Supplemental
Life Insurance coverage). The Imputed Income amount is added to the second paycheck
of each month and is subject to all payroll taxes. It is also reflected annually
on your Form W-2 as additional income for the calendar year.
The current IRS Imputed Income rates for coverage amounts over $50,000 are as follows:
Age - Monthly Cost per $1,000 of Coverage
Under age 25 - $0.05
25 to 29 - $0.06
30 to 34 - $0.08
35 to 39 - $0.09
40 to 44 - $0.10
45 to 49 - $0.15
50 to 54 - $0.23
55 to 59 - $0.43
60 to 64 - $0.66
65 to 69 - $1.27
70 and Over - $2.06
Opportunities to Enroll In or Make a Change to Supplemental Term Life Insurance Plan Coverage
If you did not elect coverage in the Supplemental Term Life Insurance Plan within
the first 31 days of your employment or wish to increase your coverage amount, you
may do so during the Annual Benefits Open Enrollment Period, which generally occurs
in November of each year. However, you will be required to complete a medical questionnaire
for any amount of coverage you elect, which will be reviewed by The Hartford and subject
to approval before becoming effective.
If you experience a Qualified Life Event (QLE) as defined by the IRS (e.g., marriage,
birth of a child, divorce, etc.), you may elect or change your Supplemental Term Life
Insurance coverage subject to the terms of the Plan. Requests must be made within
31 days of the QLE.
The Hartford Contact Info:
(Life Insurance and Long-Term Disability)
Group Benefits Division, Customer Service
(800) 523-2233