Basic Term Life and AD&D

You have several life insurance options through the Archdiocesan benefits program.  Term Life Insurance is life insurance that covers you while you are employed by us, but does not have a cash value.

BASIC TERM LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE (LIFE AND AD&D INSURANCE)

Benefits We provide Basic Term Life and AD&D Insurance to employees who work 30 hours or more per week during a school or calendar year.  The benefit is equal to 1 times your annual base pay.  The maximum level of coverage is $200,000.

  • If you are age 65 to age 70, there is a 35% reduction in coverage.
  • If you are age 70 or over, there is a 50% reduction in coverage.

Beneficiaries are to be designated via the web benefits portal.  Please contact human resources for further instructions.

Your Costs We pay the full cost to provide coverage of one (1) times your annual base pay!

Basic Term Life Insurance and the IRS The IRS has set a limit on the amount of group term life insurance you may have through an employer’s plan without being taxed. You may have up to $50,000 of group term life insurance before this benefit affects your taxes. However, if you have more than $50,000 in coverage, the ‘value’ of the coverage in excess of  $50,000 will be taxed because the IRS considers this ‘value’ to be taxable income. (The ‘value’ is determined from an IRS valuation table using age and amount of insurance.) If this applies to you, the ‘value’ of your life insurance in excess of $50,000 will appear on your pay stub and will be added to your taxable income. Appropriate federal, state, and local income taxes and Social Security and Medicare taxes will be withheld.

Beneficiary Designation

It’s important to designate a beneficiary(ies) when your insurance coverage begins. To do so, you must designate he/she/they in your web benefits portal through Paylocity.  Click here for instructions.  You should also review/update your beneficiary designations regularly.

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