Benefits Plans - Group Life Insurance: Optional Group Term Life Insurance Rates

For your Optional Life Insurance Plan, you can choose from nine different coverage options:

  • Waive coverage
  • $5,000 (minimum)
  • $50,000
  • 1 times salary
  • 2 times salary
  • 3 times salary
  • 4 times salary
  • 5 times salary
  • 6 times salary (to a maximum of $1 million)

The cost of your Optional Plan depends on the coverage you select, your age, your smoking status, and your salary. The amount of coverage you choose and its cost will increase when your salary increases if your coverage is based on your salary. Your cost will increase similarly when you move into the next higher age bracket.

If you are paid monthly, your premiums will be deducted from your monthly paycheck; if you are paid bi-weekly, your premiums will be deducted from your first and second paycheck of the month.

Your premiums will be deducted on an after-tax basis.

Calculate Your Monthly Premiums

Follow these steps below to calculate your monthly premiums for your Optional Life Insurance Plan:

  1. Find your age and smoker status on the chart below. This is your rate.
    For example, if you are 33 and a nonsmoker, your rate is $0.025.
  2. a. If you wish coverage of $5,000 or $50,000, multiply your rate from Step 1 by 5 or 50.

    Example for $50,000 of coverage: $0.027 X 50 = $1.35 (your monthly cost)

    b. If you select a salary-based option, multiply your annual salary by 1 to 6, depending the coverage option you choose. Drop the last three zeros and multiply by your rate from Step 1.

    Example: 4 times $20,000 annual salary = 80,000
    80 x $0.027 = $2.16 (your monthly cost)

Faculty or Staff Member Monthly Rates Per $1,000

Age Smoker Nonsmoker Discount


$0.025 $0.012

30 - 34

$0.027 $0.025

35 - 39

$0.034 $0.031

40 - 44

$0.052 $0.043

45 - 49

$0.088 $0.076

50 - 54

$0.146 $0.125

55 - 59

$0.229 $0.195

60 - 64

$0.356 $0.323

65 - 69

$0.639 $0.539

70 & older

$1.145 $0.746
The University of Michigan in its sole discretion may modify, amend, or terminate the benefits provided with respect to any individual receiving benefits, including active employees, retirees, and their dependents. Although the university has elected to provide these benefits this year, no individual has a vested right to any of the benefits provided. Nothing in these materials gives any individual the right to continued benefits beyond the time the university modifies, amends, or terminates the benefit. Anyone seeking or accepting any of the benefits provided will be deemed to have accepted the terms of the benefits programs and the university's right to modify, amend or terminate them.