Life Insurance and Accidental Death and Dismemberment (AD&D) Insurance

Life Insurance and AD&D Insurance Available for Domestic Partners

You may purchase Dependent Life Insurance and AD&D Insurance for your domestic partner and domestic partner’s children.

Employee Group Term Life Insurance

The Company provides you with core employee group term life insurance benefits—at no cost—to help cover your family’s financial needs if something were to happen to you. This insurance is underwritten by The Prudential Insurance Company of America and provides coverage equal to one times your Benefits Earnings up to $1 million.

You also have the choice to select:

  • Optional employee group term life insurance
  • Optional dependent group term life insurance
  • Optional AD&D insurance.

Beneficiary information is required. You must designate a beneficiary for your life insurance. If you have not yet designated a beneficiary or want to change your beneficiary, contact HR Shared Services toll-free at 1-800-676-4636 to request a beneficiary form.

Imputed Income Tax

Federal regulations require you to pay imputed income tax on the value of Company-provided life insurance in excess of $50,000. To avoid this tax, you may select the lower $50,000 option if one times your Benefits Earnings is more than $50,000. To select this option, you must complete and return the Core Life Insurance Waiver. If you choose to “cap” your employee life insurance at $50,000, you’re not eligible to purchase optional life insurance.

Note: Your cost is based on your age. Costs increase significantly as you reach the next “milestone” age bracket (i.e., 30, 35, 40, 45, 50, etc.).

Do You Need to Change Your “Smoker Status”?

To change your “smoker status,” contact HR Shared Services anytime during the year. It’s important to note that in order to change your “smoker status” from smoker to non-smoker, you must have been a non-smoker for at least 12 months.

Optional Employee Group Term Life Insurance

In addition to the core coverage provided by the Company, you may choose to purchase optional employee group term life insurance (payable with after-tax contributions). Like your core employee life insurance, this insurance is underwritten by The Prudential Insurance Company of America.

You may choose from the following coverage levels:

Core plus 1 x Benefits Earnings

Core plus 2 x Benefits Earnings

Core plus 3 x Benefits Earnings

Core plus 4 x Benefits Earnings

Core plus 5 x Benefits Earnings

This means, for example, if you select core plus one times Benefits Earnings, you’re essentially receiving a total coverage of two times your Benefits Earnings.Benefits Earnings are generally defined as the gross amount of money paid to you by the Company in cash for performing the duties required of your job, excluding any non-commission bonuses, overtime pay, and all other benefits.

 

The maximum amount of core employee group term life insurance that you carry can’t exceed $1 million. Optional group term life insurance coverage cannot exceed $3 million.

You may also be required to provide evidence of insurability (EOI) when purchasing optional employee group term life insurance if you:

  • Select four or five times your Benefits Earnings in optional employee group term life insurance coverage.
  • Increase your optional life insurance during the annual enrollment period.

Calculate Optional Employee Group Term Life Insurance Costs

The following table lists the cost for every $1,000 of group term life insurance you can buy in 2013. Keep in mind that rates are subject to change as you reach the next “milestone” age bracket (i.e., 30, 35, 40, 45, 50, etc.) during the plan year and in future years.

Employee’s Age on 12/31/12 Biweekly Cost Per $1,000 of Group Term Life Insurance
Non-smoker Smoker
Under 25 $0.014 $0.016
25–29 $0.014 $0.016
30–34 $0.018 $0.021
35–39 $0.021 $0.024
40–44 $0.029 $0.031
45–49 $0.044 $0.047
50–54 $0.069 $0.072
55–59 $0.126 $0.135
60–64 $0.189 $0.208
65–69 $0.361 $0.396
70-74 $0.598 $0.648
75 or older $0.645 $0.648

Optional Dependent Group Term Life Insurance

Dependent group term life insurance pays benefits to you in the event of the death of your spouse/domestic partner or dependent children. This insurance is underwritten by The Prudential Insurance Company of America.

You have the option to purchase this additional coverage—payable with after-tax contributions—during the Benefits 2013 annual enrollment period.

 

You can select coverage for your… In the amount of…
Dependent Children
  • $5,000
  • $10,000
  • $15,000
Spouse/Domestic Partner
  • $10,000
  • $25,000
  • $50,000*
  • $75,000*
  • $100,000*

* EOI required for amounts of $50,000 or more.

If you select coverage for your dependent children or your domestic partner’s dependent children, the coverage amount is the same for each covered child and the cost is the same regardless of the number of children you cover.

If you select coverage for your spouse/domestic partner, the cost is based on your:

  • Spouse’s/domestic partner’s age, and
  • The amount of coverage you choose.

Calculate Optional Spousal/Domestic Partner Group Term Life Insurance Cost

The following table lists the cost for every $1,000 of group term life insurance you can buy in 2013. Keep in mind that rates are subject to change as your spouse/domestic partner reaches the next “milestone” age bracket (i.e., 30, 35, 40, 45, 50, etc.) during the plan year and in future years.

 

Spouse’s/Domestic
Partner’s Age on 12/31/12
Biweekly Cost Per $1,000
of Group Term Life Insurance
Under 25 $0.014
25–29 $0.014
30–34 $0.018
35–39 $0.021
40–44 $0.029
45–49 $0.044
50–54 $0.069
55–59 $0.126
60–64 $0.189
65–69 $0.361
70 or older $0.598

 

To calculate what your optional spousal/domestic partner group term life insurance will cost:

  • From the table, find the biweekly cost for your spouse’s/domestic partner’s age.
  • Multiply the amount of group term life insurance divided by 1,000 by the appropriate cost.

 

Here’s an example. If you want to buy $75,000 of group term life insurance for your 37 year-old spouse/domestic partner, your cost would be calculated as follows:

$75,000 divided by 1,000 spacer.gif x spacer.gif $0.021 spacer.gif = spacer.gif $1.58 biweekly

 

You’ll be required to provide EOI (satisfactory to Prudential) for your spouse/domestic partner if you select optional spousal/domestic partner group term life insurance coverage greater than $25,000 and you don’t already have this level of coverage in effect.

Calculate Optional Child Group Term Life Insurance Rates

 

Biweekly Cost Per $1,000 of Group Term Life Insurance
Dependent Child $0.037

Optional AD&D Insurance

You can choose to purchase optional AD&D insurance, which provides protection for you and your dependents from accidental injuries resulting in death or the loss of limbs, hearing, speech or sight. This insurance is underwritten by The Prudential Insurance Company of America.

You will pay for this coverage with after-tax contributions. You can select single coverage for yourself only, or family coverage for yourself and your eligible dependents, as follows:

 

For You* Spouse/Domestic Partner For Children Spouse/Domestic Partner and Children
1 x Benefits Earnings
  • 60% of your optional AD&D coverage amount
  • 20% of your optional AD&D coverage amount for each child
Spouse/domestic partner:

  • 50% of your optional AD&D coverage amount

For each child:

  • 15% of your optional AD&D coverage amount
2 x Benefits Earnings
3 x Benefits Earnings
4 x Benefits Earnings
5 x Benefits Earnings

* The maximum amount of AD&D coverage you can carry for yourself is $1 million.

 

Note: This AD&D policy does not provide coverage for sickness. It provides accident insurance only, and does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department.

Calculate Optional AD&D Insurance Rates

Biweekly Cost Per $1,000 of AD&D Insurance
You Only $0.005
Family $0.009