All benefits eligible employees are provided basic life insurance coverage for themselves.  Employees can also purchase the additional coverage listed in the video for themselves and dependents.

Life Insurance from Minnesota Management and Budget on Vimeo. Learn more about plan options below or on Securian's state of Minnesota website.

Basic Group Term Life Insurance Overview

Eligibility & Enrollment
Benefit-eligible employees are automatically enrolled in basic group term life insurance upon becoming eligible. This coverage is typically provided at no cost, unless the employee’s status does not qualify for employer-paid benefits.

Coverage Amount
Coverage is based on the employee’s annual salary, up to a predetermined maximum. The total benefit amount may vary depending on salary and applicable Bargaining Agreement or Employment Plan. Additional coverage may be available, subject to plan limits.

Guaranteed Issue & Enrollment Period
Employees are eligible for guaranteed coverage without providing Evidence of Insurability (EOI) if they enroll within the initial eligibility window (typically 30 days). Enrollment outside this period may require EOI.

Tax Considerations
Coverage amounts exceeding a specified threshold may be subject to federal income tax. Employees have the option to decline coverage above this threshold to avoid tax implications. If coverage is waived and later requested, EOI may be required.

Additional Life Insurance Coverage Overview

Coverage Options
Employees may purchase additional life insurance in fixed increments, up to a maximum limit set by the plan. Coverage amounts are based on salary and subject to plan guidelines.

Guaranteed Issue for New or Newly Eligible Employees
Employees may elect coverage up to a specified multiple of their base salary without providing Evidence of Insurability (EOI), if elected within a designated enrollment window (typically 30 days from hire or eligibility date).

Evidence of Insurability (EOI)
EOI is required for:

• Coverage amounts exceeding the guaranteed limit.
• Enrollment or changes made outside the initial eligibility period.

Enrollment Flexibility
Employees may apply for or adjust additional coverage at any time during the year. EOI requirements may apply depending on the timing and amount of coverage requested.

Spouse Life Insurance Coverage Overview

Coverage Options
Employees may elect spouse life insurance in fixed increments, up to a maximum limit defined by the plan. Coverage amounts are subject to plan guidelines and cannot exceed the employee’s own elected coverage.

Guaranteed Issue for New or Newly Eligible Employees
A limited amount of coverage may be elected for a spouse without providing Evidence of Insurability (EOI), if selected within a designated enrollment window (typically 30 days from hire or benefits eligibility).

Evidence of Insurability (EOI)
EOI is required for:

• Coverage amounts exceeding the guaranteed issue limit.
• Enrollment or changes made outside the initial eligibility period.

Enrollment Flexibility
Spouse coverage may be elected or adjusted at any time during the year. EOI may be required depending on the timing and amount of coverage requested.

Coverage Limitations

• Spouse coverage cannot exceed the employee’s own life insurance coverage.
• If both spouses (or family members) are employed by the State of Minnesota or another SEGIP-participating organization and are benefits-eligible, they cannot cover each other as dependents for life or accidental death and dismemberment (AD&D) insurance.

Child Life Insurance Coverage Overview

Coverage Amount
A flat benefit is provided for each eligible dependent child. One premium covers all eligible children under the plan.

Guaranteed Issue
Coverage is guaranteed if elected within the initial enrollment window (typically 30 days from hire or benefits eligibility). No Evidence of Insurability (EOI) is required during this period.

Enrollment Options

• Guaranteed coverage may also be elected during the annual Open Enrollment period without EOI.
• Coverage can be requested at other times during the year; however, EOI may be required.

Coverage Limitations

• Only one parent may cover eligible children if both are employed by the State of Minnesota or another organization participating in the State Employee Group Insurance Program (SEGIP) and are benefits-eligible.
• Eligibility requirements apply to determine which children qualify for coverage.

Employee AD&D Insurance Overview

Coverage Purpose
Accidental Death and Dismemberment (AD&D) insurance provides financial protection in the event of death or serious injury resulting from an accident.

Enrollment & Coverage

• Coverage is guaranteed and does not require Evidence of Insurability (EOI).
• Employees may elect this coverage at any time during the year.
• Coverage is available in fixed increments, up to a maximum limit defined by the plan.

Spouse AD&D Insurance Overview

Coverage Purpose
Spouse Accidental Death and Dismemberment (AD&D) insurance provides financial protection in the event of a spouse’s death or serious injury resulting from an accident.

Enrollment & Coverage

• Coverage is guaranteed and does not require Evidence of Insurability (EOI).
• Employees may elect this coverage at any time during the year.
• Coverage is available up to a maximum limit defined by the plan.

Coverage Limitations

• Spouse coverage cannot exceed the employee’s own elected AD&D coverage amount.
• Coverage typically ends when the spouse reaches a specified age.
• If both spouses (or family members) are employed by the State of Minnesota or another SEGIP-participating organization and are benefits-eligible, they cannot cover each other as dependents for life or AD&D insurance.

Taxable Life Insurance Overview

Federal Tax Rule
Under IRS regulations, employer-paid life insurance coverage exceeding a specified threshold (commonly $50,000) is considered taxable income, referred to as imputed income.

Estimating Taxable Amount
The IRS provides a table to help estimate the monthly taxable amount of coverage over the threshold, based on the employee’s age. This cost increases with age and is used to calculate the imputed income reported for tax purposes.

Coverage Updates
Changes to the maximum value of employer-paid life insurance may affect the amount of taxable income reported, particularly for employees with higher salaries.

Waiving or Reinstating Coverage
Employees may Request to Waive Taxable Life Insurance Coverage or Reinstate Taxable Life Insurance above the threshold to avoid imputed income. To waive or reinstate life insurance, a formal request must be submitted to the benefits administrator. Use SEGIP's Find a Form page for the correct document.

Where to Find Taxable Income Information
Taxable life insurance amounts are typically listed in the “Employer Paid Benefits” section of your paycheck and reported on your W-2 form.

• Manage your Beneficiary
• Evidence of Insurability (EOI)
• Premium Information
• Waiver of premium upon disability
• Life Insurance, Accidental Death & Dismemberment Contact
• Plan Certificates

Learn more about the information above by visiting SEGIP's Life Insurance page or on Securian's state of Minnesota webpage.