As part of your total compensation, OU pays for Basic Life Insurance through Sooner Credits. Basic Life Insurance is provided at two coverage levels at no cost to full-time benefits eligible employees: 1.5 times your annual salary or a lower benefit of only $50,000. No action is required if you want to keep the same life insurance coverage you had last year. Individuals who may be concerned about imputed income1 may choose to consider this lower coverage plan. It is available to employees earning $33,000 or higher. The university provides Sooner Credits to cover the full monthly cost of this plan. There is no refund credit added to your paycheck for choosing this lower coverage option.
1 Section 79 of the Internal Revenue Code (IRC) has always required that employers calculate imputed taxable income for employees that receive group life insurance coverage in excess of $50,000. Imputed income is not new, but in 2013 OU employees have a new $50,000 coverage option. Learn more by reviewing the IRS guidelines or by contacting a tax professional or accountant.
Additional life insurance is available for you to purchase through the supplemental plan to meet your insurance needs.
OU also offers Dependent Life Insurance for your spouse. It is available to purchase with after-tax dollars at one-half the amount you purchased for yourself up to $350,000. Evidence of insurability (EOI)** is required for spouse coverage over $100,000 or 2.25 times your annual salary. You may also purchase Dependent Life Insurance for your eligible dependent children in a $5,000 or $10,000 option. The premiums are the same regardless of the number of children you cover.
A beneficiary is the person or organization that receives a benefit if the covered person dies.