Life Insurance Overview*

The company provides basic life insurance coverage of 1x salary up to $300,000 to benefits-eligible full-time employees. Salary includes base pay plus direct sales commissions. Accidental Death and Personal Loss (ADPL) coverage is provided in the same amount as the basic life insurance coverage. The life insurance and ADPL benefits are reduced to 75% of original volume amount at age 65 and then again at age 70 to 50% of the original volume amount. The reduction will be based on the employee’s age as of the last day of the year in which they turn age 65 or age 70.

In accordance with IRS regulations, the value of company-paid life insurance in excess of $50,000 must be included as imputed income for an employee and taxed accordingly.

 

* All benefit provisions described are subject to the terms of applicable collective bargaining agreements.

Employees have the option to purchase additional life insurance coverage for themselves, spouses, domestic partners and eligible children ADPL coverage is not available under supplemental life insurance.

Supplemental employee life insurance can be purchased in $50,000 increments up to $500,000. Supplemental life insurance for a spouse or domestic partner can be purchased in the following amounts: $10,000, $20,000, $30,000, $50,000, $100,000, $150,000 or $250,000. Supplemental life insurance for children can be purchased in the following amounts: $2,000, $10,000 or $20,000. The supplemental life insurance benefit for employee and/or spouse is reduced to 75% of original volume amount at age 65 and then again at age 70 to 50% of the original volume amount. The reduction will be based on the employee’s/spouse’s age as of the last day of the year in which they turn age 65 or age 70. An employee may not request an increase in coverage amount for employee or spouse supplemental life insurance once the original amount has been reduced due to age.

Payroll deductions for supplemental life insurance coverage will be taken on an after-tax basis and are taken twice a month or 24 pay periods per year.

Upon initial eligibility, new hires (or any newly eligible employees/spouses) may elect up to $250,000 in employee supplemental life insurance and up to $50,000 in spouse or domestic partner supplemental life insurance without providing EOI. No EOI is required for supplemental life insurance for children.

During the annual open enrollment period, employees can request to increase their employee supplemental life insurance coverage. EOI is required before the increase takes effect if any of the following apply:

1. The requested increase in coverage is more than $50,000;

2. The employee currently has $0 in employee supplemental life insurance; or

3. The employee currently has $250,000 or more in employee supplemental life insurance.

Any supplemental spouse or domestic partner life insurance coverage in excess of current coverage also will require EOI. No EOI is required for supplemental life insurance for children. Aetna will send EOI forms to affected employees after open enrollment is closed.

Employees must designate beneficiaries for basic life and any employee supplemental life insurance coverage. Employees can change beneficiary designations at any time by using the online Employee Self-Service system on the corporate intranet. The employee is automatically designated as the beneficiary for any supplemental life insurance purchased for a spouse, domestic partner or any children.