December 22, 2008
Term life insurance premiums to be waived for six months
Premiums for January through June term life insurance coverage will be waived in 2009, giving employees a little more take-home pay. The waiver is the result of positive claims experience on Purdue's term life insurance plan.
Biweekly-paid employees will see a small difference on their Jan. 14 pay, which will include pay and benefits for Jan. 1-4, 2009. Biweekly staff will feel the full effect of the waiver beginning with the Jan. 28 pay. The waiver will start on the Jan. 30 pay for monthly-paid faculty and staff.
The pays received in January will also reflect adjustments for the employee's overall benefits for 2009, such as new medical premiums or different flexible spending account contributions. While this is usual, employees should review their pay statements carefully and contact Staff Benefits at 49-42222 with any questions.
Faculty and staff paying imputed income on their term life insurance should note that any premium they pay for term life insurance is subtracted from the imputed income they owe. Since they won't be paying a premium for six months, they'll notice a slight increase in the imputed income deducted from their pay during this time. For more information on imputed income, scroll to the bottom of http://www.purdue.edu/hr/Benefits/term.html.
In addition to initiating the six-month premium waiver, Staff Benefits is redesigning Purdue's entire life insurance program, including a switch to a new vendor, Minnesota Life.
"The new program will offer reduced faculty and staff rates for term life insurance, dependent life insurance, and accidental death and dismemberment type insurance," said Teresa Wesner, retirement/disability/life manager. "Higher levels of coverage will also be available under the new program."
Employees should watch for an open enrollment for the new program this spring, with coverage becoming effective July 1, 2009.