Open Enrollment is open now through June 14th!

Your 2024-2025 Benefits Guide

Welfare / Life Insurance and AD&D Insurance

Planning for the Future

Nobody likes to think of a serious injury or the possibility of a death, but it’s important to plan for your future and for your loved ones. You have access to financial planning resources through Fidelity as well as company-provided and voluntary benefits that can provide support for a variety of needs and situations. In addition, the information here is available from home so you can involve key decision-makers in the process.

Basic Employee Life

Because life can suddenly take an unexpected turn, it’s good to know your elected life insurance beneficiaries are covered in the event of your death. Smiths Group provides basic life insurance through a fully insured plan with Prudential for all eligible employees equal to 1X base pay (as defined by the Plan). Your basic life coverage plus supplemental coverage may not exceed $1.5million. Who is the beneficiary of your company-paid life coverage? Log in now to elect, change or verify your life insurance beneficiary.

Supplemental Employee Life & Accidental Death and Dismemberment (AD&D)

You may purchase additional coverage for yourself up to 5x your annual salary, with a maximum benefit of $1.5 million. Your life and AD&D Insurance amounts are the same. For example, if you select 1x annual base pay, that is the amount of both life and AD&D insurance you will receive.

AD&D insurance benefits are paid to you or your beneficiary, in addition to your life insurance benefits. If your death is due to an accident, or you have a covered loss, you may be eligible to receive AD&D insurance benefits as follows.

Note: Coverage over a certain amount may require Evidence of Insurability (EOI). After electing coverage, you will receive more information from Prudential  if EOI is required.

What Is Evidence of Insurability?

Evidence of Insurability (EOI) is documentation that you provide to Prudential — our life insurance carrier — showing that you are in good health at the time you purchase certain amounts of optional life insurance.

Spouse/Domestic Partner and Dependent Child Life

You also have the option of purchasing additional life insurance for your spouse/domestic partner and dependent children. The following levels of coverage are available:

Spouse/Domestic Partner AD&D

You may also purchase AD&D coverage for your spouse/domestic partner. You may purchase amounts of 1x to 5x your annual salary, up to the amount of life/AD&D insurance coverage you have purchased for yourself.

For example, if you have 3x your annual salary in life/AD&D insurance coverage for yourself, you may purchase up to 3x your annual salary in AD&D insurance coverage for your spouse/domestic partner. In this case, you would not be able to purchase an amount of 4x or 5x your annual salary for your spouse/domestic partner.  Your basic life coverage plus supplemental coverage may not exceed $1.5million.

Imputed Income

What is Imputed Income?

Imputed income is the value of some life insurance benefits which are taxable. The IRS allows companies to provide only $50,000 of life insurance to their employees tax-free. If the amount of your basic life insurance exceeds $50,000, the IRS considers the cost of providing this additional amount of insurance as taxable wages and calls it “imputed income.”

Suppose your amount of Company-provided life insurance is $60,000. The cost to provide $10,000 of life insurance (the amount over $50,000) is determined by an IRS Table based on age. This imputed income and is added to your taxable wages.

 

Have You Named A Beneficiary?

Your beneficiary is the person who receives your benefit in the event of your death. If you are electing coverage for the first time or wish to update your beneficiary, you can designate a beneficiary by clicking “Enroll Now” or “Log In” at the top of the page. You may also contact the Smiths Group Benefits Center to request to have your information updated. You are automatically the beneficiary for insurance you purchase covering your spouse and/or children.