Northeastern provides a comprehensive life-insurance program to benefits-eligible faculty and staff that includes basic life insurance for employees as well as optional life insurance that employees may purchase for themselves and/or their eligible dependents. In addition, the life-insurance program provides valuable added features and services such as portability, guarantee issue, and survivor support. The life insurance program is insured by Liberty Mutual.
Basic Life Insurance
The Basic Life Insurance Plan provides two times annual base salary, to a maximum of $500,000. This coverage is fully paid by the university. Enrollment is automatic, so it is important to designate a beneficiary. (age reduction schedule applies after age 65)
Under the current tax laws, the value of basic life insurance that exceeds $50,000 is subject to federal, Social Security and state taxes, if applicable. The taxable value of the life insurance, which the IRS calls imputed income, will appear on your W-2 at the end of the year.
Optional Life Insurance
The Optional Life Insurance Program provides the opportunity to purchase, through convenient after-tax payroll deduction, optional life insurance for employees and/or their eligible dependents. The three optional life insurance plans are Supplemental Employee, Spouse/Same-Sex Spousal Equivalent and Child(ren) Insurance.
The optional life insurance program has a feature called guarantee issue. This is the amount of life insurance that can be purchased without providing a Statement of Health. The Statement of Health is required by Liberty Mutual to verify good health and is in the form of a online questionnaire. The Guarantee Issue Period is during the 30 days following your initial eligibility (i.e. date of hire) or change-in-family status, which includes birth, adoption and marriage. Coverages elected after the Guarantee Issue Period must be done during open enrollment and the Statement of Health will be required.
Age Rated Table
The rates for both the Supplemental Employee and Optional Spouse/Same-sex Spousal Equivalent Insurance are based on an age rated schedule and coverage amount. Supplemental Employee Life is based on the employee age and the Optional Spouse/Same-Sex Spousal Equivalent Insurance is based on the spouse/same-sex spousal equivalent age. The rates will increase the first of each year following a salary increase and/or movement to a different age band. The rates below are guaranteed until January 2015.
|Age||Monthly Rate per $1000|
|75 and over||4.696|