Supplemental 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, rounded to the nearest multiple of $1,000 (two times adjusted insurable earnings for Senior Managers).
Coverage begins reducing by 10% (of your full coverage in effect on your 61st birthday) each year, on the first of the month following your birthday starting at age 61 (no reduction applies for Senior and Middle Managers). The minimum coverage while employed is 10% of your adjusted insurable earnings.
|Annual earnings at age 60
|Coverage at age 60
|10% of coverage in effect at age 61
|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.
You must enrol in Supplemental Life Insurance to apply for Optional Life Insurance, Accidental Death and Dismemberment Insurance and Dependent Insurance.