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Life Insurance - Plan Options

Basic Life Insurance

As part of your total compensation, OU pays for Basic Life Insurance through Sooner Credits. Basic Life Insurance is provided at two coverage levels at no cost to full-time benefits eligible employees: 1.5 times your annual salary or a lower benefit of only $50,000. No action is required if you want to keep the same life insurance coverage you had last year. Individuals who may be concerned about imputed income1 may choose to consider this lower coverage plan. It is available to employees earning $33,000 or higher. The university provides Sooner Credits to cover the full monthly cost of this plan. There is no refund credit added to your paycheck for choosing this lower coverage option.

Section 79 of the Internal Revenue Code (IRC) has always required that employers calculate imputed taxable income for employees that receive group life insurance coverage in excess of $50,000. Imputed income is not new, but in 2013 OU employees have a new $50,000 coverage option. Learn more by reviewing the IRS guidelines or by contacting a tax professional or accountant.


Supplemental Life Insurance

Benefits eligible employees have the opportunity to enroll in supplemental life insurance for themselves and their families. There are three options available:

  • Option 1 is 1.5 times your annual salary (annual salary x 1.5, example 30,000 x 1.5 = 45,000)
  • Option 2 is 3 times your annual salary (annual salary x 3, example 30,000 x 3 = 90,000)
  • Option 3 is 4.5 times your annual salary (annual salary x 4.5, example 30,000 x 4.5 = 135,000)

Spouse Dependent Life Insurance

You may also choose to enroll your spouse according to the options below. Keep in mind, an employee must elect coverage on themselves before electing coverage for their spouse or children. Spouse coverage cannot exceed 50% of the employee coverage amount:

  • Option 1 is .75 times your annual salary (annual salary x .75, example 30,000 x .75 = 22,500)
  • Option 2 is 1.5 times your annual salary (annual salary x 1.5, example 30,000 x 1.5 = 45,000)
  • Option 3 is 2.25 times your annual salary (annual salary x 2.25, example 30,000 x 2.25 = 67,500)
  • Option 4 is 3 times your annual salary (annual salary x 3, example 30,000 x 3 = 90,000

Employees may also enroll in child dependent life insurance:

  • Option: $5,000 / $10,000 for  $1.00 / $2.00

CONTACT

Lincoln Financial
www.LincolnFinancial.com
800-423-2765

News: Add or Review Beneficiaries Online!

Beneficiaries can be added in the Life Insurance section of Employee Self-Service during annual open enrollment. Employees will now be able to update beneficiary information at anytime via Employee Self-Service.

An employee's estate will be the designated beneficiary if they do not designate one when first enrolling in basic coverage. 
If they choose to enroll in additional coverage, the same beneficiaries designated for an employee's basic coverage will be assigned to their additional coverage. The employee is automatically designated as the only beneficiary for spouse and child coverage.