Life Insurance

• The state pays the full cost for employees who are eligible for benefits.
  
• You are automatically enrolled for this coverage when you become eligible for benefits, unless your employment status does not qualify you for employer provided coverage.
  
• Coverage is guaranteed. Proof that you are healthy is not required (called Evidence of Insurability or EOI) unless you enroll outside your initial 30-day eligibility period.
• Coverage above $50,000 is taxed. If you do not want to pay that tax, you may decline coverage above $50,000. Get details in the Taxable Life Insurance section below. 
• If you waive coverage over $50,000 and decide to sign up later during Open Enrollment, you will have to provide EOI.
• Your benefit is based on annual salary (consult your bargaining agreement).
  
• Maximum coverage allowed is $200,000, based on your salary.
  
• Basic term life for Managers - visit this page to learn more about the Income Protection Plan (IPP) for Managers.
• Learn more about term life insurance and why it's important.

• Coverage is available in increments of $5,000 not to exceed $500,000.
  
• As a new employee, you can elect up to two times your base salary, guaranteed - evidence of insurability (EOI) is not required, if elected within 30 days of your hire date.
  
• If you become eligible for benefits after your hire date, you can elect up to two times your base salary, guaranteed - EOI is not required, if elected within 30 days of your initial eligibility date.
  
• EOI is required for coverage elected after your initial eligibility and/or if it exceeds the guaranteed maximum (two times your base salary).
  
• Employees can elect this coverage at any time during the year.

• Coverage is available in increments of $5,000 not to exceed $500,000.
  
• As a new employee, you may elect up to $10,000 of coverage - guaranteed, evidence of insurability (EOI) is not required, if elected within 30 days of your initial eligibility date.
  
• If you become eligible for benefits after your hire date, you can elect up to $10,000 of coverage - guaranteed, EOI is not required, if elected within 30 days of your initial eligibility date.
  
• EOI is required for coverage elected after your initial eligibility, and/or if it exceeds the guaranteed maximum ($10,000).
  
• Employees can elect this coverage at any time during the year.
  
• You may not have a greater dollar value of coverage for your spouse than you have for yourself.
• If you and your spouse or another family member are employed by the state, or another organization participating in the State Employee Group Insurance Program, none of the eligible members may cover the other as a dependent for Life or AD&D insurances as long as both are benefits eligible.

• Coverage amount is $10,000.
  
• One premium insures all of your eligible children. For more information about the eligibility of your children, go to the Family Eligibility page.
  
• As a new employee, coverage is guaranteed if elected within 30 days of your hire date.
  
• If you become eligible for benefits after your hire date, coverage is guaranteed if elected within 30 days of your initial eligibility date.
  
• After your initial eligibility period, guaranteed coverage may be elected each annual open enrollment period - evidence of insurability is not required, or coverage may be elected any other time during the year with EOI.
  
• If two employees covered by the State Employee Group Insurance Program are married and have children in common, only one employee can cover their eligible children.

• Accidental Death and Dismemberment (AD&D) insurance provides coverage for death or dismemberment due to an accident.
  
• All coverage is guaranteed, Evidence of Insurability is not required.
• Employees can elect this coverage at any time during the year.
  
• Employee coverage may be elected in increments of $5,000, up to the plan maximum of $200,000.

• Accidental Death and Dismemberment (AD&D) insurance provides coverage for death or dismemberment due to an accident.
• Coverage is guaranteed, EOI is not required. Employees can elect this coverage at any time during the year.
• May be elected up to a maximum of $25,000.
  
• You may not have a greater dollar value of coverage for your spouse than you have for yourself.
  
• Terminates when your spouse reaches age 70.
  
• If you and your spouse or another family member are employed by the state, or another organization participating in the State Employee Group Insurance Program, none of the eligible members may cover the other as a dependent for Life or AD&D insurances as long as both are eligible for benefits.

Under federal tax rules, you will pay taxes on the amount of life insurance above $50,000. The IRS calls this taxable portion "imputed income." To calculate the amount for your specific income, use the table on page 15 of the IRS Employer’s Guide to Fringe Benefits for Use in 2025. The table shows the tax on income per $1,000 of basic life insurance above $50,000.

Effective Jan. 1, 2025 the maximum value of the State’s Basic Life insurance increased to $200,000. This table shows examples of imputed income across age groups and the value of life insurance. Under the increased maximum benefit, the table shows an increase in taxable income for employees earning above $95,000 annually.

If you wish to decline this benefit, submit the Request to Waive Taxable Life Insurance Benefit form to SEGIP. If you want to reinstate the benefit,  send this form to SEGIP.

You can see your current increase in taxable income in your paycheck’s “Employer Paid Benefits” section. You’ll also find it in Box 12C on your W-2 form.

The image below shows the section of a paycheck where an employee's basic life insurance is taxed—the example of a 52-year-old employee with a basic life insurance policy valued at $95,000. 

• Evidence of Insurability (EOI) involves completing a health questionnaire and may require you to provide access to medical records or take a simplified physical exam.
• EOI is generally required when electing or increasing your optional life insurance coverages outside of Open Enrollment.
• If approved, the coverage is effective the date of the approval.
• You will be notified if your coverage has been approved or denied.

• Evidence of insurability is NOT required when:
  • Electing additional term life of up to two times your annual salary within your initial enrollment period if you are a new employee or are an employee who is now eligible for benefits.
  • Electing spouse term life of up to $10,000 within your initial enrollment period if you are a new employee or an employee who is newly eligible for benefits.
  • An active employee gets married and elects up to $10,000 of spouse term life. For more information about qualified life events visit our Change my Coverage page.
  • The value of employee or spouse term life insurance coverage automatically doubles in the event of an accidental death.

Rate Guide (PDF version) – This brings you to the life insurance rates section of the rate guide.

• If you become totally and permanently disabled before age 70, you may apply for a continuation of all your life insurance coverage currently in effect without further premium payments.
  
• The waiver of premium may continue until age 70.
  
• For more information contact SEGIP.

Securian

1-877-494-1714

segip@securian.com

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