Page 17 - 2022 Penn Engineering Guide

Your Life & AD&D Coverage

Basic Life and AD&D Insurance
Your Age Non- Smoker
PennEngineering provides Basic Life and AD&D Insurance for you at an amount equal to your
Smoker
annual base earnings (rounded to the next higher multiple of $1,000) up to a maximum of
$300,000. Under 30 $.053 $.092

30 – 34 .063 .119
AD&D Insurance coverage provides a cash payment to your designated beneficiary equal to your
annual base earnings if you die as the result of an accident. This Plan also provides a cash 35 – 39 .083 .161
payment to you for certain injuries (such as full or partial loss of sight, the loss of a hand or foot,
40 – 44 .132 .281
etc.) resulting from an accident. Basic Life and AD&D coverage is effective after 60 days of
continuous employment. You are not required to sign up for this coverage. It is 45 – 49 .215 .505
provided automatically and is paid for by PennEngineering. Note that Basic Life and AD&D
Insurance is term life insurance provided for Active employees only. Be sure to keep your 50 – 54 .366 .836
beneficiary designation(s) up-to-date and make any necessary changes by updating your 55 – 59 .644 1.317
beneficiary designation in MyADP.
60 – 64 .919 1.657
Additional Life Insurance
65 – 69 1.92 3.118
You may purchase Additional Life Insurance in $10,000 increments, from a minimum of $10,000
to a maximum of $500,000. However, the amount of total Life Insurance coverage you elect 70 – 74 2.826 4.295
cannot exceed eight times your annual base earnings. If you choose to elect Additional Life
Over 74 7.201 10.534
Insurance during the Open Enrollment period for the first time, or are increasing existing
coverage, evidence of insurability may be required. This may include a statement of health,
blood tests and a physical exam. This must be approved by the insurance company before Monthly Rate per $1,000
coverage becomes effective. If you are enrolling as a new hire, you may elect up to $100,000 in of Coverage.
coverage for yourself without evidence of insurability.
For example, if you are 41

years old and do not use
Cost of Additional Life Insurance
tobacco, your cost per
The amount you pay for Additional Life Insurance is determined by the amount of coverage you
$1,000 of Additional Life
elect, whether you use tobacco and your age. If you elect Additional Life Insurance coverage, use
Insurance would be $.132
the following table to determine your weekly contribution for coverage. Multiply the monthly
a month, or .030 cents per
cost by 12 to obtain an annual rate, then divide by 52 for the amount to be deducted from your
paycheck.
pay each week.

Dependent Life Insurance
You may also request life insurance for your covered dependents. Dependent Life Insurance
provides a cash payment upon the death of your spouse or a dependent child. You or your
spouse must elect Additional Life Insurance coverage if you wish to cover dependent children.
The coverage selected for your spouse cannot exceed 100% of your coverage amount. If you are
enrolling as a new hire, you may elect up to $30,000 in coverage for your spouse without
evidence of insurability.

Spousal Coverage
You may request insurance coverage for your spouse in increments of $5,000, from a minimum
of $5,000 to a maximum of $250,000. To determine the weekly cost of your spouse’s coverage,
refer to the table above, using your spouse’s age and the monthly rates based on his/her
smoking status. Multiply the monthly rate by 12 to obtain the annual rate, then divide by 52 for
the amount to be deducted from your pay each week for each $1,000 of coverage.

You may elect $10,000 coverage for each of your dependent children. The cost for this coverage 16

is $24.00 per year, or $0.46 per week. Although each child has $10,000 of insurance coverage,
the amount you pay remains the same whether you have one or several children.