Raider Family

Life Insurance: Income Replacement and Survivor Benefits

HFHS offers voluntary life insurance options to provide important income protection for your family.

EMPLOYEE TERM LIFE INSURANCE My Choice Rewards provides you with a variety of life insurance options. You may choose either more or less coverage, in the increments shown below, based on your projected needs. Coverage is purchased with pre-tax dollars. The maximum protection you can receive from this benefit is $1 million.

Coverage after age 65 If you continue to work after age 65, the amount of your life insurance will decrease on Jan. 1 following your 65th birthday as follows:

• Age 65-69 65% of elected option • Age 70-74 50% of elected option • Age 75+ 20% of elected option

Dependent term life insurance coverage does not decrease if you continue working past age 65.

Coverage Level

Maximum Benefit

1 x Your Base Pay

$250,000

2 x Your Base Pay

$500,000

Imputed income When you purchase insurance in excess of $50,000, you are subject to the IRS imputed income rules. Imputed Income is the value of your life insurance in excess of $50,000. You are required to pay federal and state income taxes, as well as Social Security tax on this “excess” amount. The amount of tax you pay is based on your age. The value of the life insurance in excess of $50,000 will be reported on your W-2. Terminal illness benefit Enrollees who are diagnosed with a terminal illness (life expectancy of 12 months or less) may apply to have up to 50% of their employee life insurance paid out to them in advance. Information is available from Employee Services.

3 x Your Base Pay

$750,000

4 x Your Base Pay

$1 million

$10,000 $25,000 $50,000

Fixed Amount*

*Options available to part-time employees

Life insurance deductions are based on an employee’s age and salary. Deductions change based on the following age groups:

Age

Rate per $1,000 of Coverage

29 and younger

$0.022

30 to 34

$0.033

35 to 39

$0.049

40 to 44

$0.071

45 to 49

$0.108

50 to 54

$0.180

55 to 59

$0.321

60 to 64

$0.440

65 to 69

$0.892

70 and older

$2.046

If you move up more than one coverage level, or you are electing coverage when you previously waived coverage, you must furnish evidence of insurability (EOI).

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