Life Insurance Benefits
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, survivor support and emergency assistance. The life insurance program is insured by UNUM.
Basic Life Insurance
The Basic Life Insurance Plan provides two times annual base salary, to a maximum of $500,000 (age reduction schedule applies after age 65). This coverage is fully paid by the university. Enrollment is automatic, so it is important to designate a beneficiary.
Imputed Income
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 Dependent Child(ren) Insurance.