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Life Insurance (Physicians) (UWMF)

Life Insurance (Physicians) (UWMF) - Pay & Benefits, Benefits, Life Insurance, Physicians

Focus

Benefit Summary

Life insurance is provided to help survivors maintain financial security. In the event of your death or serious injury in an accident, we also provide Accidental Death and Dismemberment coverage, both at no cost to you. UWMF pays your life and AD&D insurance premiums. 

Life insurance is an "after tax" benefit. You pay the tax on the premium so your beneficiaries will receive the entire benefit tax free in the event of your death.

Benefit Eligibility

To be eligible for life insurance, you must have a 50% appointment or greater. Life insurance is a mandatory benefit.

Premiums and Tax Implications

Premiums for Group Life and AD&D are paid for by the UW Medical Foundation.

The Internal Revenue Service (IRS) requires individuals to pay income tax on the value of any life insurance coverage in excess of $50,000. This means UWMF Physicians are required to pay taxes on the imputed cost of $450,000 in life insurance. The IRS published tax rates can create a significant tax liability for Physicians.

To reduce the Physician tax liability, UWMF offers the option to separate the life insurance into a base of $50,000 through UWMF and an additional $450,000 through a Voluntary Employee Benefit Association (VEBA). By electing the VEBA option, the tax liability can be reduced as shown in the .

Physicians are offered the opportunity to enroll in the VEBA option when newly eligible for coverage. If waived when first eligible, an enrollment opportunity is offered each year for January 1 coverage. Once you are enrolled in the VEBA option, you cannot opt out. 

Beneficiary Changes

You may change your life insurance beneficiary at any time. To update your beneficiary, please complete the Life Insurance Beneficiary Change Form – Physician and return this form to Human Resources. If you are enrolled in the VEBA option, please also complete the VEBA Life Insurance Beneficiary Form.

Enrollment

Life insurance is a mandatory benefit, and all eligible employees are automatically enrolled at time of new hire.

Physicians are offered the opportunity to enroll in the VEBA option when newly eligible for coverage. If waived when first eligible, an enrollment opportunity is offered each year for January 1 coverage. Once you are enrolled in the VEBA option, you cannot opt out. 

FAQ

I want to change my life insurance beneficiary. How do I do that?

Contact UW Health Human Resources at (608) 263-6500 to obtain the necessary form.

Resources

Summary of Coverage

Life Insurance Enrollment Form – Physicians

VEBA Life Insurance

2018 VEBA Rate Table