Population: New or Prospective Non-Represented
Your Benefits 2000 Group Term Life Insurance Program
The Company offers different Group Term Life Insurance Program options to help you provide financial security to those who depend on you. When you choose group term life insurance coverage, you receive:
- Traditional life insurance coverage—available in three coverage levels;
- Coverage for accidental death and dismemberment arising out of employment with the Company—equal to the amount of the group term life insurance option you choose; and
- Accelerated Benefit Option if you have less than six months to live—you may receive 50% of the group term life insurance option you choose (up to $50,000). After your death, the life insurance benefit your beneficiary(ies) will receive is reduced by any amount already paid out.
Understanding your benefits is the first step to getting the most value out of them—using them wisely and taking advantage of all their features can help you save money while being a smart consumer. Use the following information to become a better consumer of your group term life insurance benefits.
Quick Reference
- Basic coverage of $50,000 maximum, or one or two times your pay;
- The Company pays for one times pay;
- An Accelerated Benefit Option pays 50% of your group term life insurance amount, up to $50,000;
- Additional benefits equal to one times your basic coverage in the event of accidental death;
- Your coverage ends when your employment does; but you can convert coverage to a personal plan if you leave the Company;
- Coverage over $50,000 results in taxable benefits (imputed income on the value of the benefit, based on IRS tables);
- This policy does not offer a cash accumulation opportunity or paid-up value; and
- When you first enroll or if you increase your level of insurance, you may be required to provide Evidence of Insurability (EOI). You'll be notified if EOI is required.
A Word About Taxes
Under federal law, you can receive coverage of up to $50,000 on a before-tax basis. If you purchase coverage above $50,000, the IRS requires that you pay tax on the value of this additional coverage. The federal government determines the taxable value of your coverage, or imputed income, based on your age. For most age brackets, the extra tax is a small amount.
For a more detailed description of your benefits, see the Group Term Life Insurance section of the Benefits 2000 Non-Represented summary plan description.