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Group Life/AD&D: FAQ

How much Life Insurance should we give our employees?

There are two ways to go with school-provided insurance. The first is to offer all employees an equal benefit such as $50,000. The second is to offer a plan that has a benefit based on annual salary (1x, 1.5x, etc.). Almost always, the best rate for Life Insurance will be the one with an equal ("level") benefit since younger employees will have the same benefit amount as older employees. With salary-related benefits, the rate is usually more expensive since older employees typically are the ones with the highest salaries. Also, it is important to remember that the value of employer-provided Life Insurance for amounts in excess of $25,000 is considered "imputed income" to the employee and is, therefore, taxable according to tables published by the IRS under IRC Section 79. The determined value must be added annually to the employee's W2 form.

Life Insurance is Life Insurance. Does ISM offer anything extra?

Yes! Our Life Insurance plans offer a special Survivor Financial Counseling service for beneficiaries of deceased employees. We also include an additional up to $100,000 higher education benefit for dependent children attending college on a full-time basis. The Trust also offers portability for terminating employees at very competitive rates.

Will the ISM group Life plan permit employees to buy additional insurance?

Through ISM's supplemental Life Insurance plans, individual employees can purchase up to $100,000 additional coverage for themselves and up to $50,000 coverage for a spouse and/or up to $10,000 for children. There is no need to supply evidence of insurability, and there are no pre-existing conditions limitations.

What information do we need to give ISM to get a proposal?

All we need is a census of benefit-eligible employees including date of birth, gender, job classification, and annual salary. So that we can reconcile the census, we also ask for a current copy of your school's list invoice for any plan you have now.

The Independent School Group Life and Disability Insurance Trust (IS/IT) is underwritten by Union Security Insurance Company, rated "A-" (Excellent) by A. M. Best. Products and services are underwritten and/or provided by Union Security Insurance Company.

Learn More

To learn more about ISM's Independent School Group Life and Disability Trust, email ISM Director, Independent School Group Insurance Trust Lori Leonard, or call , 302-656-4944 for more details.

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