Life Insurance and AD&D

Life and Accidental Death & Dismemberment (AD&D) Insurance is an important part of your overall financial plan.  The University of St. Thomas provides every benefit eligible employee with life insurance coverage of two times your annual salary, up to a maximum of $200,000.  Employees are provided with the same amount of AD&D coverage.

Federal laws require you to pay a tax on the value of your term life insurance in excess of $50,000.  This value is a calculation determined by IRS regulations and is automatically added to your paycheck so that you can be taxed appropriately.  This is referred to by the IRS as “Imputed Income”.

This benefit also provides the following additional services:

  • Survivor Financial Counseling Services
    This personalized financial counseling service provides expert, objective financial counseling to survivors and terminally ill employees at no cost to them.  This service is also extended to employees upon the death or terminal illness of their covered spouse.
  • Waiver of Premium
    If you become disabled (as defined by the University plan) and are no longer able to work, your premium payments may be waived during the period of disability.
  • Accelerated Benefit
    If you become terminally ill and are not expected to live more than twelve months, you may request up to 50% of your life insurance amount up to $750,000, without fees or present value adjustments.

Optional Life and Accidental Death & Dismemberment (AD&D) Insurance

You may elect to purchase additional term life and accidential death & dismemberment coverage as follows:

  • Employee:    Up to five times your annual salary in increments of $10,000.  Not to exceed $500,000.
  • Spouse:        Up to five times the employee’s annual salary in increments of $10,000.  Not to exceed $500,000.
  • Child(ren):   $5,000 or $10,000.  Not to exceed $10,000.