A life insurance policy provides a payment in the event of your death that can help protect your family's lifestyle in the absence of your earning power. "Many people have financial goals they are trying to meet with hard-earned income—such as paying off a mortgage, putting a child through college or supporting an elderly parent. Life insurance can help support your family goals," says Tom Ewanich, a vice president and actuary at Fidelity Investments Life Insurance Company.
Here's how it works:
When you purchase a life insurance policy, you’re buying a contract with the issuing insurance company. The issuing insurance company guarantees, subject to the insurance company's claims-paying ability, that upon your death it will pay your beneficiaries a preset amount that is typically free from income taxes. Your beneficiaries receive the payment directly from the insurance company, so the funds arrive without the delays and expenses associated with the probate process that governs assets passed down via a will. And because the probate process is often made public, life insurance may also provide your family a non-financial benefit: privacy. However, depending on the size of your estate, benefits from a life insurance policy may be subject to estate tax.
Does UNT System Offer Employees Life Insurance Coverage?
Yes! Benefits-eligible employees will automatically receive a $5,000 basic life insurance policy when they enroll in the medical plan. Employees can elect additional optional life insurance coverage up to 4 times their base annual salary, to a maximum of $400,000, whichever is less. Employees can elect coverage during Annual Open Enrollment in July or when they experience a mid-year Qualifying Life Event.