Life and AD&D Insurance
Life and AD&D coverage helps protect your loved ones in the event of your death or serious injury. Even if you’re single, your beneficiary can use your Life insurance benefits to pay off your debts, such as credit cards, mortgages, and other final expenses.
Basic Life and AD&D
Basic Life insurance – You receive Basic Life insurance coverage at no cost to you, and you do not need to enroll in any other health and protection program. Basic Life insures you for 5 times your basic annual earnings, up to a maximum of $1,000,000.
Basic AD&D mirrors your Basic Life coverage and provides you specified benefits for a covered accidental bodily injury that directly causes dismemberment (i.e., the loss of a hand, foot or eye). If death occurs from an accident, 100% of the AD&D benefit would be payable to your beneficiary(ies).
What’s Guarantee Issue?
Guarantee issue is the level of coverage that does not require medical information.
If your Basic Life coverage are are entitled to exceeds $700,000 you will need to answer medical questions for the additional coverage up to $1,00,000. You can submit medical information anytime throughout the year.
If your Voluntary Life elections exceed the thresholds listed below, you will need to submit medial information. You can submit medical information anytime throughout the year. During annual enrollment, you can elect coverage up to the guarantee issue amount without submitting EOI.
- Employee Guarantee Issue Limit: $150,000
- Spouse Guarantee Issue Limit: $25,000
- Child Guarantee Issue Limit: 100% (no medical information required)
What Happens to My Basic Life/AD&D Benefit if My Salary Increases?
If your basic life entitlement of 5x annual base salary did not exceed the $700,000 threshold and you receive an increase to your salary which results in a benefit higher than the $700,000 threshold, you will not need to submit medical information. If your basic life entitlement of 5x annual base salary did exceed the $700,000 threshold, and you did not submit medical evidence, and you receive an increase to your salary, you will need to submit medical information for the entire amount above $700,000.
A Note About Taxes
Company-provided life insurance coverage over $50,000 is considered a taxable benefit. The value of the benefit over $50,000 will be reported as taxable income on your pay slip and annual W-2 form.
Your voluntary life/AD&D coverage is paid by you with after-tax payroll deductions.
Survivor Assurance
Losing a loved one is difficult. And we understand how challenging it can be for beneficiaries to manage their loved one’s insurance benefits among other pressures during such a difficult time. NYL Survivor Assurance program offers services to support beneficiaries when it is most needed. Contact NYL at 800-570-3778 weekdays between 8:00 am and 7:00 pm (EST).
Voluntary Life and AD&D
Voluntary Life and AD&D insurance allows you to purchase additional life insurance to protect your family’s financial security. Coverage is available for your spouse and/or children if you purchase coverage for yourself. You pay the cost of voluntary life/AD&D coverage.
Employee Voluntary Life insurance – You can elect Voluntary Life insurance coverage for yourself in increments of $10,000 up to a maximum of $500,000.
Spouse Voluntary Life insurance – You can elect Voluntary Life insurance coverage for your spouse in increments of $5,000 up to the lesser of $250,000 or 100% of your own election.
Child Voluntary Life insurance – You can elect Voluntary Life insurance coverage for your child in increments of $1,000 to $10,000. Coverage is limited to $1,000 from birth to 6 months.
Voluntary AD&D mirrors your Voluntary Life coverages and provides you specified benefits for a covered accidental bodily injury that directly causes dismemberment (i.e., the loss of a hand, foot or eye). If death occurs from an accident, 100% of the AD&D benefit would be payable to any applicable beneficiary(ies).
Spouse and Child Coverage
Spouse and/or child coverage requires the purchase of additional employee life/AD&D coverage. The maximum allowable spouse election is tied to the employee’s additional coverage level.
Child coverage end at age 26, unless the child is disabled.