|Employee Life Insurance|
- Minimum Coverage
- Additional Coverage
- Help with selecting the right amount of coverage
- Keep your Beneficiary Information up to date
- Insurance for those age 65 and over
- Changing Personal Information in Employee Self-Service
A life insurance policy can help replace income and pay for things like housing, living expenses, and funeral expenses in the case of an unexpected death.
Ithaca College benefit credits include an amount sufficient to purchase coverage equivalent to approximately one times your base pay (up to $50,000 of salary). You must select a minimum of $20,000 in life insurance coverage. If you are age 65 or older special provisions apply. Credits and coverage limits are reduced in line with the cost of providing coverage.
In addition to your minimum level of life insurance of $20,000, you may purchase additional life insurance in multiples of $20,000, up to an overall maximum of $200,000 but not to exceed 10 times your base pay. The cost of the first $50,000 of life insurance will be paid for with College benefit credits or reduced from your paycheck on a before-tax basis. If your total exceeds $50,000, the remaining cost will be paid with after-tax dollars.
As you consider your life insurance options, here are some factors to consider:
- What expenses would your survivors need to cover if you died — mortgage, college education, other financial obligations? Would your savings provide an adequate financial cushion for your family?
- Do you have other sources of survivor benefits, such as personal life insurance policies, retirement plans or pension plans?
- Are life insurance benefits under Individual Choice less expensive than coverage you can purchase on your own?
- Is your coverage amount adequate? Remember, you can change your level of life insurance each year. If you increase your coverage more than $40,000, however, you will need to provide evidence of insurability.
It is imperative that you keep your life insurance beneficiary designation current. In order to elect a beneficiary, you must:
- Fill out the Add Beneficiary/Contact form
- Submit the form to the Office of Human Resources (Please allow at least 48 hours for processing.)
- Designate your Beneficiaries online via Parnassus Employee Self Service
Your Life Insurance Coverage amounts in force on the day before the first day of the month in which you reach age 65 will be reduced by:
- 35% at age 65
- 60% at age 70
- 75% at age 75
The reduction will take effect on the first day of the calendar month in which you reach the age specified. No reduction will take place if your Life Insurance has already been reduced because of retirement. If you become insured during or after the month in which you reach the above ages, your amount of Life Insurance will be the applicable percentage of the amount shown for your classification.
If you retire and you remain in an Eligible Class, your Life Insurance will remain in force during your retirement, subject to change or termination in accordance with the terms of the group contract. Your Life Insurance will be reduced as of the date you retire to $5,000.