The UNMC Benefits Office has composed a list of the most frequently asked questions concerning benefits. This week, UNMC Today will have articles addressing those questions. If you have a specific question, please email the benefits office.
Today’s question and answers go over life insurance, long-term disability (LTD), flexible spending accounts and the health savings account coverage offered by the University of Nebraska.
VOLUNTARY LIFE INSURANCE
Q: Where can I designate my beneficiary?
A: You can designate your beneficiary for the 1x Annual Salary Life Insurance and Voluntary Life Insurance by logging into Firefly, clicking the Employee Self Service (ESS) tile, then on the Beneficiary tile under the Benefits heading.
Q: How are premiums calculated?
A: Premiums are based on your age and tobacco/nicotine designation. As a reminder, each year the tobacco/nicotine designation needs to be resubmitted during NuFlex annual enrollment.
SPOUSE LIFE INSURANCE
Q: Who is the beneficiary of this policy?
A: Since you, as the employee, are electing this coverage on your spouse, you are the beneficiary.
Q: What are the coverage election options for this coverage?
A: The coverage election options for this coverage are $10,000, $20,000 and $50,000. If you are electing this coverage or increasing the amount of your current election during NuFlex Annual Enrollment, you will need to complete the Statement of Health form.
CHILD LIFE INSURANCE
Q: Who is the beneficiary of this policy?
A: Since you, as the employee, are electing this coverage on your child(ren), you are the beneficiary.
Q: What are the coverage election options for this coverage?
A: The coverage election options for this coverage are $5,000 and $10,000. If you are electing this coverage or increasing the amount of your current election during NuFlex Annual Enrollment, you will need to complete the Statement of Health form on each child that is not currently covered or that you are increasing the coverage level on.
ACCIDENTAL DEATH & DISMEMBERMENT
Q: Who is the beneficiary of this policy?
A: Since you, as the employee, are electing this coverage on your family, you would be the beneficiary if an accidental death or dismemberment occurred. In the event that you are dismembered, the policy would pay out to you. If an accident resulted in your death, then the person(s) you have listed as your primary beneficiary under your life insurance with the university would be the beneficiary to this policy.
Q: How does this policy cover dependents?
A: When you elect a coverage amount, your spouse is covered at 50% of that value and children are covered at 10% of that value. An example would be electing the $100,000 coverage. The employee is covered at $100,000; their spouse is covered at $50,000, and any children on the coverage are each covered at $10,000.
Q: When would this policy payout?
A: Unlike other life insurance policies, there is not a statement of health required on this coverage since it only pays out in the event of an accident or dismemberment.
LONG TERM DISABILITY (LTD)
Q: What do the different coverage levels under this plan mean?
A: When looking at the different coverage options under this plan, there are 50% and 66 2/3% coverage options. These percentages are how much of your income will be paid in the event you become disabled. In addition, there is a 90-day and 180-day waiting period. This is the amount of time you would need to be deemed disabled before the insurance company would begin to pay the percentage of your university salary that was elected.
Q: How does the pre-existing clause work on this coverage?
A: When you enroll or increase the coverage for this benefit, there is a pre-existing condition clause that will apply for the first 12 months of coverage. After the initial 12 months, the pre-existing condition clause no longer applies.
An example of how this coverage works would be if an employee elects the 66 2/3 income and 180-day waiting period. In the first year of coverage, the employee files a claim due to their back. When reviewing that claim, the LTD Company will look back three months prior to the effective date of the coverage to see if the employee has had any sort of treatment for their back. If there was treatment, then the claim would be denied due to it begin a pre-existing condition.
If that same claim was filed after 18 months from the effective date of coverage, the pre-existing condition would not apply, even if there was treatment for this condition prior to enrolling in the coverage.
FLEXIBLE SPENDING ACCOUNTS (FSA)
Q: What is the difference between the Health and Dependent Care Flexible Spending Accounts?
A: The health flexible spending account is for medical, dental and vision expenses. The dependent care flexible spending account is for day care expenses.
Q: What is the benefit to these plans?
A: Both accounts are set up so that you can contribute funds on a pre-tax basis. This lowers your taxable income for the year.
Q: What is the disadvantage to these accounts?
A: These accounts are use-it-or-lose-it accounts. This means that you will need to have enough expenses by the end of the year in order to claim the full amount elected. New this year, the university will allow you to roll a remainder of the balance of your Health Flexible Spending Account over (no rollover for Dependent Care) to the next calendar year.
Q: Who is eligible to contribute to these accounts?
A: Those who are enrolled in the PPO medical plans through the university are eligible for the Health Flexible Spending Account. Those who have dependents and are utilizing day care are eligible for the Dependent Care Account.
HEALTH SAVINGS ACCOUNT (HSA)
Q: What is the difference between the Flexible Spending Account (FSA) and Health Savings Account (HSA)?
A: Only employees that are enrolled in the Qualified High Deductible Health Plan (QHDHP) with the university are eligible to set up a health savings account (HSA) that is payroll deducted. The HSA allows you to contribute funds on a pre-tax basis; however, these funds can roll over from year to year. You also have the ability to invest these funds in order to help grow this account.
Q: How do I set up this account?
A: If you are enrolled in the Qualified High Deductible Health Plan (QHDHP), you will need to set this account up through Fidelity Investments. This also is where you will elect the contribution you will make from your university paycheck.
If you have questions or concerns pertaining to benefits enrollment, please contact the Benefits Office to schedule a one-on-one meeting. Meetings can be scheduled via email or by calling 402-559-4340.