Basic Term Life Insurance provides faculty and staff with term life insurance and accidental death and dismemberment coverage as financial support for designated beneficiaries in the event of the death of benefits-eligible faculty and staff. This plan is fully University paid.
Under IRS regulations, the value of employer paid Basic Term Life insurance coverage in excess of $50,000 is considered taxable income to the covered individual and is reported as Code C in Box 13 of W2 statements and included as “Wages, Tips and Other Compensation.”
The taxable amount or "imputed value" of such insurance is determined by the IRS table below and is added to a participant’s taxable wages.
In addition to life insurance, a condolence check is a monetary gift from Northwestern University given to a beneficiary or the spouse of a deceased employee in memory of the deceased employee. The Condolence check is calculated using the deceased employee’s benefits base pay at a rate of 2 times their monthly pay.