Employees who are eligible for Basic Life Insurance may also purchase Optional Life Insurance coverage. Optional Life Insurance coverage can be one, two, three, four, five, six or seven times an employee's base salary up to $300,000. This amount is in addition to the Basic Life Insurance coverage amount of $50,000. A matching amount of accidental death coverage (AD&D) is automatically provided.
The premium for Optional Life Insurance coverage is based on a rate (determined by age) per $1,000 of coverage. The premium is paid through biweekly payroll deductions. The biweekly deduction amount is determined by multiplying the appropriate rate by the coverage amount. Two examples are provided at the end of this document.
Biweekly deductions are calculated using the following rates (rates include coverage for an equal amount of AD&D coverage) and can also be found in the Life Insurance Enrollment Kit:
Employee Age |
Cost Per Thousand Dollars of Coverage |
less than 30 |
$0.023 |
30-34 |
$0.026 |
35-39 |
$0.034 |
40-44 |
$0.041 |
45-49 |
$0.059 |
50-54 |
$0.090 |
55-59 |
$0.138 |
60-64 |
$0.241 |
65 and over |
$0.433 |
Please contact your operating location office responsible for benefits administration to complete an enrollment form indicating your Optional Life Insurance choice and beneficiary designations(s). Employees who have not applied within 60 days of eligibility will be required to provide medical evidence of good health.
Mr. Jones is 36 years old. His annual salary is $25,000. Mr. Jones has met the 6-month waiting period and is therefore automatically covered for $50,000 of Basic Life Insurance.
Mr. Jones has chosen 4 times his annual salary in Optional Life Insurance coverage.
$25,000 x 4 = $100,000
$100,000 x .034 dollars per thousand = 100 x .034 = $3.40 biweekly deduction.
Therefore his total coverage amount is $150,000 ($50,000 of Basic and $100,000 of Optional)
Ms. Doe is 49 years old. She has a projected annual salary of $50,000. Ms. Doe has met the 6-month waiting period and is therefore automatically covered for $50,000 of Basic Life insurance.
Ms. Doe has chosen 7 times her annual salary in Optional Life insurance coverage.
$50,000 x 7 = $350,000
But the maximum optional benefit is $300,000, so we cap her insurance coverage at this level. She is also entitled to an additional $50,000 of the Basic coverage.
$300,000 x .059 dollars per thousand = 300 x .059 = $17.70 biweekly deduction.
Therefore her total coverage is $350,000 ($50,000 of Basic and $300,000 of optional)
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