Through FlexSolutions, you may elect a coverage amount equal to...*
-
$50,000
-
50% of your annual base salary
-
1 times your annual base salary
-
2 times your annual base salary
-
3 times your annual base salary
-
4 times your annual base salary, or
-
5 times your annual base salary
... up to a maximum benefit of $1,000,000.
Coverage is rounded up to the next $1,000. For example, if your salary is $31,600 and you elect two times your salary, your coverage amount would be $64,000, not $63,200.
If your salary changes during the Plan Year, your coverage amount will automatically change accordingly; however, your FS Credits and the cost for the new coverage level will remain the same until the next Plan Year.
Annual base salary as it applies to Employee Life, Accidental Death & Dismemberment and Business Travel Accident insurance is defined as your annual earnings from A&B, not including bonuses, commissions, overtime pay, or any other form of extra compensation.
Back to Top
If Your Coverage Exceeds $50,000
If you elect a coverage amount above $50,000, you will have "imputed income" for federal income tax purposes. This means that, according to IRS rules, the value of the coverage in excess of $50,000 provided by A&B (based on the FS Credits the Company provides) will be assigned a value based on the applicable IRS table. That value will be reported as "other compensation" on your W-2 Form and treated as taxable income.
For example: Let's assume you are 45 years old and the amount of life insurance coverage you have in excess of $50,000 is $100,000. According to the IRS table, an additional $15 per month ($180 annually) would be considered "other compensation" and therefore taxable.
If you have any questions regarding this provision, consult with a qualified tax advisor.
Back to Top
