Life Insurance

Active faculty and staff receive group term life insurance in an amount equal to their annualized salary, rounded to the next highest thousand dollars. The maximum amount of coverage is one times salary or $500,000, whichever is less.

Age reduction provisions apply for active employees age 70 and older. Please see the life insurance certificate for details.

• On your retirement date, the life insurance coverage is reduced to 80 percent of the life insurance in effect on your last full day of active work, rounded up to the nearest $1,000.
• On July 1 coinciding with or next following the first anniversary of retirement, the life insurance coverage is reduced to 60 percent of the life insurance in effect on your last full day of active work (not rounded), or $2,500 if age 70.
• On July 1 coinciding with or next following the second anniversary of retirement, the life insurance coverage is reduced to 40 percent of the life insurance in effect on your last full day of active work (not rounded), or $2,500 if age 70.
• On July 1 coinciding with or next following the third anniversary of retirement, the life insurance coverage is reduced to 20 percent of the life insurance in effect on your last full day of active work (not rounded), or $2,500 if age 70.
• On July 1 coinciding with or next following the fourth anniversary of retirement, the life insurance coverage is reduced to $2,500.
   

Example One:

An employee with a life insurance benefit of $104,000 prior to retirement at age 60:

• On the date of retirement, the benefit reduces to $84,000.
• On July 1 following the first anniversary of retirement, the benefit reduces to $62,400.
• On July 1 following the second anniversary of retirement, the benefit reduces to $41,600.
• On July 1 following the third anniversary of retirement, the benefit reduces to $20,800.
• On July 1 following the fourth anniversary of retirement, the benefit reduces to $2,500.
   

Example Two:

An employee with a life insurance benefit of $104,000 prior to retirement at age 68:

• On the date of retirement, the benefit reduces to $84,000 (age 68).
• On July 1 following the first anniversary of retirement, the benefit reduces to $62,400 (age 69).
• On July 1 following the second anniversary of retirement, the benefit reduces to $2,500 (age 70).

Premiums for retiree group term life insurance are fully paid by the university. Premiums paid by GW for benefits in excess of $50,000 are taxable to active employees and to retirees, and are reported on form W-2 each year. While you are an active employee, this information appears on your regular W-2 from GW. Once you are retired, GW will generate and mail to you a special W-2 for the purposes of reporting this benefit.