How does the Long Term Disability Insurance Policy work?

Our company provides every eligible employee with Group Term Life and Accidental Death and Dismemberment (AD&D) insurance equal to one (1) times your annual salary up to $125,000 at no cost to you. Coverage is automatic and requires no election by the employee, though beneficiary designation is required.

The policy offers an Accelerated Death Benefit, waiver of premium for disability, and continuation options in the event your employment ends. The AD&D plan pays a benefit in the event of death as a result of an accident. The policy also offers benefits in the event of dismemberment or paralysis as a result of an accident or injury.

Under current tax law, the value of group life insurance coverage over $50,000 is taxable income, called imputed income. Because pays for the cost of group life insurance, you are responsible for paying taxes on the value of the coverage in excess of $50,000. The value is determined from tables published by the IRS. Imputed income will be reflected on your paychecks and on your W-2 form.

Designating a Beneficiary:

You must name the person(s) or entity to receive benefits in the event of your death. The beneficiary designation applies to your Group Term Life and AD&D Insurance. Contact Human Resources to update your beneficiary information. You are able to update your life insurance beneficiary at any time throughout the year, and as many times as needed.