Page 34 - 2022 Insurity OE Guide FINAL
P. 34
Reliance Standard – Company Paid Basic
Life Insurance and Accidental Death
& Dismemberment
Basic Life Insurance and Accidental Death Evidence of Insurability
& Dismemberment (AD&D)
• Basic Life: 2x base annual salary to a maximum of $650k • None required. This plan is Guaranteed Issue.
• AD&D: Equal to your Basic Life insurance benefit • Enrollment is automatic – but you must provide Beneficiary
• Portability and Conversion included information during your benefit enrollment.
• Benefit Reduction:
– 50% at age 70
Imputed Income – Tax on W-2 for Basic Life Insurance
Employers can provide employees with $50,000 of tax-free group term life insurance coverage. According to IRS code
Section 79, any amount of coverage above $50,000 that is paid for by an employer must be recognized as a taxable benefit
and included on the employee’s W-2 as imputed income. Employees will see this imputed income as a deduction and
offsetting earning on their semi-monthly payroll.
34
