Life and Accidental Death & Dismemberment Insurance Coverage
Effective January 1, 2013 the $50,000 maximum cap for Bates paid Basic Life and AD&D Insurance of 1x salary has been eliminated.
Employer paid life insurance in excess of $50,000 is subject to tax under IRS guidelines. See the Imputed Income Explanation for details. Any additional taxable income will be calculated automatically beginning in January. Note, if your Basic Life Insurance is less than $50,000 there is not taxable income.
There has been a change in rates for several of the Employee Voluntary Life Age Brackets (bolded). Spouse/Partner, dependent child life rates and AD&D rates remain the same. If you or a covered spouse/partner changed age brackets you will see an increase in coverage. The age brackets and rates are listed below:
Age Monthly Rate per $10,000
Under 25 $0.80 $0.60
25 – 29 $0.60 $0.60
30 – 34 $0.70 $0.80
35 – 39 $0.90 $0.90
40 – 44 $1.50 $1.22
45 – 49 $2.40 $1.94
50 – 54 $4.30 $3.25
55 – 59 $6.90 $5.40
60 – 64 $8.10 $6.60
65 – 69 $13.80 $12.70
70+ $37.40 $30.29>
To make any changes to your Life or AD&D coverage for your self or your dependents for January 1, 2013, please contact Human Resources during the Annual Enrollment Period – November 5th through November 20th.
Life Insurance: You can reduce coverage at any time, however, if you do so and later wish to increase coverage again you will need to complete a Personal Health Statement.
If your Basic life insurance is increasing due to the elimination of the $50,000 cap you do not need to submit a personal health statement. However, if the combination of your Basic Life and Supplemental Life exceeds $500,000 you will need to submit a personal Health Statement to receive any life insurance in excess of $500,000. There is a total maximum cap of $850,000 between your basic life and supplemental life insurance.
If you would like to increase coverage, you will need to complete a Personal Health Statement and submit to UNUM Life Insurance for review. You may be asked by UNUM to submit additional information or even take an up-to-date physical. UNUM will be responsible for any expenses associated with the review.
If you opt out of Life Insurance you will receive a credit of the cost of the coverage or $.065 per $1,000 of coverage.
Accidental Death & Dismemberment (AD&D): You can increase or decrease your AD&D coverage at Annual Enrollment without having to submit any health information. This differs from Life Insurance because the state of your health does not affect your likelihood of having an accident. There is a total maximum cap of $850,000 between your basic AD&D and supplemental AD&D insurance.
Spouse/Partner Life and AD&D Insurance: Your spouse/partner Life Insurance Coverage cannot exceed 100% of your own coverage. You spouse/partner can increase from $10,000 or $20,000 to $30,000 without submitting a Personal Health Statement. However, if they are applying for coverage for the first time or coverage in excess of $30,000 it will require a Personal Health Statement.
Your Spouse/partner AD&D coverage cannot exceed 100% of what you have on your self. Similar to your own coverage you can increase or decrease your Spouse/Partner AD&D Coverage without submitting any health information.
Child(ren) Life and AD&D Coverage: You can increase your Child(ren) life coverage to $15,000 during annual enrollmentwithout submitting a Personal Health Statement. To increase to $20,000 in coverage a Personal Health Statement must be completed. You must have some Life Insurance Coverage on yourself to cover your child(ren).
You can increase or decrease your Child(ren) AD&D Insurance at any time without submitting any health information. You must have some AD&D coverage on yourself to elect coverage for your child(ren).
If you already have Child(ren) Life or AD&D Coverage any children under age 26 will automatically be covered. If you do not see a child listed on your Online Benefit Statement please notify Human Resources.