Life Insurance

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Optional Life Insurance


You must enrol in Supplemental Life Insurance to apply for Optional Life Insurance.

If you have this coverage, in the event of your death from any cause, your beneficiary would receive benefits equal to your adjusted insurable earnings.

Coverage begins reducing by 10% (of your full coverage in effect on your 61st birthday) each year, on the 1st of the month following your birthday starting at age 61. The minimum coverage while employed is 10% of your adjusted insurable earnings.  

​Example
​Annual earnings at age 60 $89,400​
​Coverage at age 60 ​$89,000
​10% of coverage in effect at age 61 ​$8,900
​If no change in earnings:
​Coverage effective April 1 after the 61st birthday ​$89,000 - $8,900 = $80,100
Coverage effective April 1 after the 62nd birthday ​$80,100 - $8,900 = $71,200
​Coverage effective April 1 after the 63rd birthday $71,200 - $8,900 = $62,300

Benefits are not taxable when paid to the beneficiary you name (any interest paid between the date of death and the date of payment is taxable). However, if your estate receives life insurance benefits, they may be subject to probate fees, since they may be considered assets.

Published on February 01, 2016