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Group Life Insurance

1. University Paid Life Insurance
2. Employee Paid Life Insurance
3. Evidence of Insurability

1. Termination or Reduction of Coverage
2. Life Insurance Forms

UNIVERSITY PAID LIFE INSURANCE

As a regular full-time faculty or staff member, you are covered by a University- paid group-term life insurance policy in the amount of $5,000. Coverage is effective on the date of your appointment.

EMPLOYEE PAID LIFE INSURANCE

You may elect to purchase an additional amount of life insurance coverage.

1. As newly hired faculty or staff you may elect coverage equal to one, two, or three times your salary (rounded to the nearest $1,000) without providing any medical history or proof of good health.
2. The maximum amount available during your first year at Penn State will be $150,000.
3. During the annual open enrollment period, you may increase your life insurance amount each year by one times salary, without providing medical history or evidence of insurability.
4. The maximum amount may be increased each year by one times salary up to the lesser of five times salary or $500,000.
5. Your cost for the additional coverage is determined by your age as shown in the following chart.
6. Rates increase as an individual's age changes from one five-year band to the next. The increase is effective the first full payroll period following the birthday.

EVIDENCE OF INSURABILITY

As previously noted, when you enroll as a new employee, you may buy 1,2 or 3 times your base pay, up to $150,000 without evidence of good health. Evidence of insurability will be required only under the following circumstances:

1. As a new employee, you choose coverage equal to 4 or 5 times your annual salary or you require an amount in excess of $150,000 during your initial enrollment.
2. During the annual open enrollment period, you want to increase your employee paid life insurance by more than one times your salary.
3. You do not enroll or you drop your employee paid coverage and want to enroll at a later date.

If you are required to provide evidence of insurability, the coverage you are requesting will become effective only when approved by the insurance company.

TERMINATION OR REDUCTION OF COVERAGE

When your employment with Penn State University ends at retirement or termination, protection under the group life plan is continued for 31 days. During this 31-day period of extended coverage, you have the right to convert your group term coverage to an individual life policy by contacting any agent of the Prudential Insurance, the company that underwrites the University life insurance plans. If you do so within the 31 day period, evidence of insurability will not be required.

As your needs change, you may wish to decrease the amount of your employee paid life insurance. Additionally, if you are actively employed by Penn State at age 65, the amount of your employee paid life insurance will begin to be reduced and cannot be increased thereafter. The reduction schedule is as follows:

LIFE INSURANCE FORMS

During your initial eligibility as a new employee and during subsequent open enrollment periods, life insurance enrollment and changes will be done on-line through ESSIC, the Employee Self Service Information Center.

However, if you are not a new employee and you want to enroll in the employee paid life insurance program, you will need to download and complete the following forms:

Life Insurance and Evidence of Insurability