Employee life insurance provides valuable financial protection for you and your family members who may depend on your income. Life insurance coverage is also available for your spouse and dependent children. The program is insured under MetLife.
Basic Life Insurance
The company automatically provides you with basic life insurance in the amount of two times annual pay, up to a maximum benefit of $1,000,000. Short-hour and term-of-project short-hour employees receive a benefit equal to one times annual pay.
Reduction in Coverage At Age 65
When you reach age 65, your basic life benefit is reduced. Between ages 65 and 69, benefits are reduced to 65% of the original amount. At age 70, benefits are reduced to 50% of the original amount.
Under IRS rules, you must pay income taxes on the IRS determined value of your basic life insurance above $50,000. This value is called imputed income and becomes part of your taxable income reported on your W-2 form. Click here for more information about imputed income.
Supplemental Life Insurance
If you decide you need more than basic life insurance, you can purchase supplemental coverage. Any benefits payable are in addition to the basic life insurance provided by the company.
The cost of supplemental coverage is based on your age and whether or not you smoke. You are considered a non-smoker if you have not smoked within the past twelve months. You can choose coverage for yourself equal to one, two, three, four, five or six times your annual pay, up to a maximum benefit of $2,000,000.
You pay for supplemental life insurance with after-tax dollars. Your cost per pay period is listed on your online benefit enrollment worksheet.
Visit the Pearson Employee Portal to designate your life insurance beneficiaries.