Loyola University Chicago

Human Resources

Life Insurance

Loyola University provides employees with a basic life insurance program and an option to purchase supplemental life insurance for employees, spouses and dependent children.  This is one of our income protection benefits designed to help you build and protect financial security for you and your dependents.  For more life insurance information, click here to review the information in the Benefits Booklet.

revised 7/27/16

Loyola University Chicago automatically provides you with basic term life insurance equal to 1½ times your annual salary, with a maximum of the lessor of one and one-half times your annual salary or $500,000. Loyola pays the entire cost of this coverage and the policies are currently administered through The Prudential Insurance Company of America (Prudential).

Eligibility: Faculty with a FTE status of .80 or higher, or staff with an FTE status of .50, or .53 or higher.

Imputed Income: There are some tax consequences to employees with employer-funded insurance coverage over $50,000. As mandated by the IRS, coverage amounts in excess of $50,000 are subject to imputed income whereby the cost of the life insurance coverage in excess of $50,000 is subject to federal income and Social Security (FICA) taxes. The taxable amount is included in your W-2 and is calculated using an IRS age-based table. If you wish to limit your life insurance coverage to a $50,000 maximum, you will not be subject to the excess tax. To do this, you must complete a waiver form obtained from the Human Resources office. However, please understand that if you elect to limit your life insurance to $50,000 and later wish to reinstate your coverage amount to the original 1½ times your salary, or increase any other life insurance coverage, you will need to complete an Evidence of Insurability form, which may include a physician’s certification of good health (See the evidence of insurability section below). For more information, please contact the Human Resources office.

Employee: If you are benefits-eligible (University staff FTE .53 or higher; HSD Staff .50 FTE or higher) and interested in additional term life insurance coverage for yourself, you may purchase supplemental life insurance. This coverage may be purchased in amounts equal to 1, 2, 3, 4, or 5 times your annual salary, up to a maximum of $500,000. The cost for this coverage is based on your age. The premium you pay for this coverage automatically changes when your salary or age changes. Please realize that the amount of coverage you select may be subject to evidence of insurability (EOI) rules. In compliance with the Age Discrimination in Employment Act (ADEA-B), basic and supplemental life insurance coverage will be reduced when the employee reaches age 65. The amounts of coverage decrease as shown in the chart to the right.

Spouse: If you are benefits-eligible, you may purchase life insurance coverage for your spouse if you elect employee supplemental life insurance for yourself. The amounts for spouse supplemental life insurance start in $5,000 increments up to $50,000 and thereafter, $10,000 increments up to a maximum of $100,000. However, the maximum coverage for your spouse without evidence of insurability (EOI) is $25,000, only for a new hire. A legally domiciled adult (LDA) is not eligible to enroll in spousal life insurance.

Child: If you are benefits-eligible, you also may purchase a flat $5,000 plan that covers your unmarried dependent children from age six months until age 26. You may cover newborns and newly adopted children if you enroll them within 31 days after their arrival. The coverage amount for newborns through age six months is $1,000.

Evidence of insurability (EOI) is the process by which an insurance carrier determines that an employee or spouse is insurable at or above a certain dollar amount by requiring proof of good health. If employees are newly hired, they may elect supplemental life insurance up to 2x annual salary without an EOI, if they enroll within the first 31 days of employment. Any new election or increase to coverage made after a new hire enrollment period will require EOI.

To start the EOI process, complete a Benefit Enrollment/Change Form. Complete sections 1 and 8 on the form, sign and date it, and return to the benefits office via e-mail at benefits@luc.edu or fax to 312.915.7612. A benefits representative will contact you after receipt of your form and advise you on the next step.

Evidence of Insurability
Basic life insurance 1.5x Evidence of insurability does not apply
If your supplemental life exceeds 2x your annual salary Evidence of insurability applies
If spousal dependent life is greater than $25,000 Evidence of insurability applies
Any change to supplemental or spousal life, if it is not elected within the first 31 days of employment Evidence of insurability applies

Life insurance benefits are paid to the beneficiary on file when a life insurance claim is processed. You are automatically the beneficiary of any life insurance you choose for your spouse and children. Beneficiaries can be updated online anytime during the year by visiting Employee Self-Service. You are able to designate both a primary and secondary beneficiary for your own insurance plan. Below is some suggested wording for identifying that beneficiary.

Suggested Wording for Beneficiary Designation
Type of Beneficiary Wording to Be Used
To your estate
One beneficiary
Two beneficiaries (equal shares)
Two beneficiaries (unequal shares)
One primary and one contingent
Mary J. Smith, wife
James Jones, brother, and Mary Scott, friend, in equal shares or the survivor, if any.
John J. Wills, father, as to two-thirds and Mark I. Wills, brother, as to one-third or the survivor, if any.
Lois P. Gomez, wife, if living otherwise Tom V. Gomez, son

Life insurance ends on your last day worked. Dependent life insurance coverage terminates either when your coverage ends or when the individual ceases to be your eligible dependent. For life insurance purposes only, an unmarried dependent child, who is eligible for life insurance benefits, is covered up to age 26. You may have portability options to continue your life insurance, provided you are not sick or injured. Portability permits a portion of your existing (group) coverage to be continued through the carrier after your University employment ends if you contact Prudential within 31 days of your last day worked.

Alternatively, you have the option to convert your group life insurance to an individual (permanent) whole life policy with the carrier, Prudential. You must act within 31 days of your termination date to continue coverage under either option.

To obtain an application for either option, you may contact Prudential at 800.778.3827. Please provide the contract number 51765 when calling. Representatives are available to assist you Monday through Friday between 7 a.m. and 7 p.m. Central Time.