Basic Life Insurance

Princeton University provides Basic Term Life Insurance coverage, until age 60, equal to one and one-half times your annual base salary, rounded up to the next $1,000, up to a maximum of $500,000. For example, if your annual base salary is $17,000, the term life insurance benefit is $26,000 ($17,000 times 1.5 rounded up to the next $1,000). Life insurance coverage increases automatically with salary increases.

For those age 60 and older: After age 60, coverage is reduced according to the following table:

Benefit Reduction Table
Age	% of coverage in effect
60	90%
61	82%
62	75%
63	68%
64	62%
65	56%
66	51%
67	46%
68	42%
69 or older	38%

For example, if you earn $30,250 and turn 65 in December, your coverage would be recalculated on the following January 1 as follows: $30,250 x 1.5 = $45,375 x 56% = $25,410

Eligibility: Coverage becomes effective on your first day of appointment or hire.

Accidental Death and Dismemberment and Business Travel Accident Insurance: Princeton University also provides insurance, without cost to you, for Accidental Death and Dismemberment and Business Travel Accident Insurance. Additional benefits are payable to the beneficiary of a staff member who dies in an accident or who sustains loss of limb or eyesight. The full death benefit equals one and one-half times the basic annual earnings of the insured until age 60. After age 60, the benefit reduction is the same as for basic term life insurance. The maximum benefit payable is $500,000.

Should a staff member die as a result of an accident while on authorized University business, additional benefits are payable under the University's Business Travel Accident Insurance coverage. The amount of Business Travel Accident Insurance equals five times the basic annual earnings up to a maximum of $500,000 (reduction of benefits begins at age 70).

Carrier for Basic Life and Accidental Death and Dismemberment: Prudential Life Insurance Company.

Carrier for Business Travel Accident Insurance: Hartford Accident and Indemnity Company.

You may purchase additional life insurance coverage through the Supplemental Life Insurance program. This program offers term life insurance in a lump sum equal to one, two, three, or four times annual base salary (rounded to the nearest thousand).

Eligibility: You are eligible to enroll on your first day of appointment or hire. Coverage becomes effective the first day of the month coincident with or next following the date you sign the enrollment form. You may also elect or increase your level one time your base salary within 31 days of your marriage or birth of a baby or during Open Enrollment. You may elect or increase your level more than one time your base salary at any time during the year by completing an Evidence of Insurability Form. Aetna Life Insurance Company will review your application and approve or deny your request. Please contact the Office of Human Resources to obtain the Evidence of Insurability Form.

The cost of supplemental life insurance depends on the option chosen and the salary and age of the insured. The maximum benefit available for lump sum insurance is $700,000. To calculate the cost per year of the supplemental life insurance coverage, use the following formula:

For example, if you are 32 years old and earn $30,250 and elect supplemental life at 2 times your salary your annual cost would be $36.60. The calculation is as follows:

$30,250 x 2 = $60,500 rounded to the next thousand = $61,000 ¸ 1,000 x 0.05 x 12 (months) = $36.60

You may elect Supplemental Life Insurance within 30 days of your hire/appointment or within 30 days following a change in your family status (marriage, birth, or adoption of a child). If you do not choose to purchase supplemental coverage within those 30 days, you may enroll at another time. However, you will be required to submit evidence of insurability to Aetna. Aetna will then determine whether additional coverage is approved.

The value of your supplemental life insurance will not decrease with age. It will continue to be based on your annual base salary.

When you retire or terminate employment at Princeton, your life insurance policy terminates. You have 31 days from your termination date to convert your basic term and/or supplemental life insurance coverage to an individual whole life policy. Rates for conversion are high since no physical examination is required.