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voluntary term life insurance deductions

Voluntary Term Life Insurance Enrollment

To be eligible for Voluntary Term Life Insurance, employees must be eligible for basic life insurance provided by the state.
For enrollment, beneficiary designation, and change forms, contact your agency's human resource office.

Note: Voluntary Term Life insurance enrollment forms are not available online and must be submitted in a hard copy

Once the enrollment application is completed, the agency will submit an Employee Voluntary Deduction action in IPOPS.
Employees may also purchase additional life insurance for their spouse and qualifying children, as long as the employee coverage is established and the dependent coverage does not exceed the employee's coverage.
For questions relating to coverage, contact the Office of Group Insurance.

Overview of Coverage

The coverage amount for the employee can be 1, 2 or 3 times their annual salary, with a minimum coverage of $20,000 and a maximum coverage of $500,000.
Spouse coverage can be $10,000, $20,000, $30,000, $40,000 or $50,000, as long as their coverage does not exceed the employee's coverage.
Children coverage is $10,000 for each qualifying child. The premium rate is $2.00, regardless of the number of children covered.

Voluntary Term Life Insurance Calculations

The Voluntary Term Life insurance deductions have a monthly premium that is calculated based on the employee's annual equivalent salary (AES), rounded to the nearest thousand, and the employee's age as of July 1st. When calculating the spouse premium, the employee's age will be used.
Insurance rates and factor amounts are provided by the Office of Group Insurance. New rates are effective the first pay date in August.
To calculate Voluntary Term Life insurance - round the employee's annual equivalent salary up to the nearest thousand, multiply that number by the deduction indicator (410 = 1, 411 = 2 or 412 = 3), divide that number by 1000, and multiply that number by the monthly premium charge associated with the employee's age (as of July 1st of the current Fiscal Year).

These deductions use:

App Code 1 - pay group 01 employees

App Code 3 - pay group 20 employees

Age	Factor
5-year age increments	Monthly Premium per $1,000 of coverage
35 and Under	.07
36 Thru 40	.11
41 thru 45	.16
46 Thru 50	.26
51 Thru 55	.41
56 Thru 60	.75
61 Thru 65	1.01
66 Thru 70	1.55
71 Thru 75	2.23
76 Thru 80	3.35
81 Thru 85	5.00

Based on the Voluntary Term Life Insurance coverage selected by the employee, the following deductions can be added. If coverage has been selected for the employee, spouse and children, there will be three deductions established.

Deduction	Description
410	Employee Voluntary Life Insurance 1x Salary
411	Employee Voluntary Life Insurance 2x Salary
412	Employee Voluntary Life Insurance 3x Salary
413	Spouse Life Insurance $10,000
414	Spouse Life Insurance $20,000
415	Spouse Life Insurance $30,000
416	Spouse Life Insurance $40,000
417	Spouse Life Insurance $50,000
418	Child Life Insurance $10,000

Voluntary Term Life Insurance Calculation Examples:

Employee with 1× coverage. No spouse or child. Annual Salary Rounded < $20K.

AGE	Annual Salary Rounded	Rate 903 DIR based on age	Employee Coverage	Spouse Coverage	Child Coverage
39	$15K *20K Minimum	.11	410 (×1)	0	0

Calculation is $20K ÷ 1000 = 20.00 × .11 = $2.20

Deduction Amount = $2.20

*If an employee's annual salary is less than $20,000.00, the minimum coverage amount will be calculated using $20,000.00.

Employee with 2× coverage. No spouse or child.

AGE	Annual Salary Rounded	Rate 903 DIR based on age	Employee Coverage	Spouse Coverage	Child Coverage
49	$38K	.26	411 (×2)	0	0

Calculation is $38K × 2 = $76K ÷ 1000 = 76.00 × .26 = $19.76

Deduction Amount = $19.76

Employee with 3X coverage. No spouse or child.

AGE

Annual Salary Rounded

Rate 903 DIR based on age

Employee Coverage

Spouse Coverage

Child Coverage

$179K

**$500K Maximum

.11

412 (×3)

Calculation is $179K × 3 = $537K $500K ÷ 1000 = 500.00 × .11 = $55.00

Deduction Amount = $55.00

**The following message will be displayed when an employee's annual salary x three equals more than $500,000.00.

Employee with 1× coverage, spouse with 3x coverage and 1 child.

Spouse and child benefits cannot exceed 100% of the employee's coverage. In the scenario below, the spouse coverage can only go up to $30K because the employee is coverage is $36K.

Deduction 410 (1x) - 415 (30K) - 418 (10K)