Like planning for a long trip, planning for your future means anticipating unforeseen difficulties. Though unpleasant to think about, your death could leave your loved ones with an added financial burden. GSU offers several options to assist you in providing protection and financial security for you and your family. These options include term life insurance and universal life insurance.
Term life insurance provides a benefit when you die. The death benefit is equal to the coverage amount in effect at that time and is payable to your beneficiary. Term life insurance covers you for as long as your premium is paid. It does not build cash value to borrow against or to receive upon cancellation of the policy.
Universal life insurance, like term life insurance, provides a benefit when you die. The benefit is equal to the coverage amount in effect when you die and is payable to your beneficiary.
Unlike term life insurance, universal life also includes a savings fund that earns tax-deferred interest at competitive rates. Any savings and earned interest are available to you for withdrawal or can be held “in reserve” to continue coverage if you elect to stop paying premiums for periods of time. At retirement, you can withdraw some or all of your savings, or use your money to buy paid-up life insurance. The balance of your savings fund will be paid to your beneficiary if you die before withdrawing your money.
To choose the amount of coverage that is right for you and your family, begin by thinking about what your family would need to maintain their lifestyle if they no longer had your income. How long do you wish to provide financial support for your family? Multiply the number of months by what they would need for housing, education, installment debt, and on-going expenses such as food, utilities, etc. From this total, subtract the amount of any coverage you already have in place. The difference is the amount of life insurance you should consider.
GSU employees may choose among these life insurance plans:
You are eligible if you are a full-time employee and are regularly scheduled to work at least 30 hours per week (75 percent of full-time), with an appointment extending beyond 180 days.
You may enroll within 30 days of your employment or eligibility.
If you do not enroll during your first eligibility period, you may apply for coverage anytime thereafter by providing proof of insurability. If approved, your life insurance will be effective on the date the insurance company approves your coverage.
For more details contact:
This term life insurance plan is offered by the State Employee Group Benefits Program and is underwritten by Prudential Life Insurance Company. The state pays half the life insurance premium for the employee or retiree. If you are an active employee, your premiums are eligible for tax sheltering under the University’s Cafeteria Plan. You have the option of enrolling in the Basic Plan ($5,000 face amount) or Basic Plus Supplemental Plan. Coverage available under the Basic Plus Supplemental Plan is based on the amount of your salary. The maximum coverage available is $50,000. If you earn in excess of $32,666.67 you are eligible for the maximum coverage. Either plan includes the option of dependent life insurance for your spouse and eligible children. You pay the entire premium for the dependent life coverage. Accidental death and dismemberment benefits are available through either plan to all active employees and to retirees under age 70. You are eligible for this plan if you are an active GSU employee appointed at 75 percent paid time or greater for more than 120 days.