Life and Accident Insurance
When bad stuff happens, it pays to be prepared.
Life can catch us all by surprise sometimes. That’s why ServiceNow provides you with Basic Life and Accidental Death and Dismemberment (AD&D) Insurance – to protect your loved ones in case something unexpected happens to you. Employees also have the option to purchase additional Life and AD&D coverage at discounted rates.
Basic Life and AD&D
The Basic Life Insurance benefit through Prudential is 2x your annual salary (including bonus and commission) to a maximum benefit of $1,000,000. We pay for this benefit on your behalf to help protect your loved ones in case something happens to you. But there is one catch-the IRS requires that you pay tax on the cost of any life insurance coverage in excess of $50,000. While this taxable amount is nominal, you have the option to cap your benefit at $50,000 if you feel that is enough insurance for your beneficiaries. You will make this election when enrolling through BenefitSolver.
Voluntary Life and AD&D
Insurance through Prudential allows you to purchase additional life and AD&D insurance for yourself, as well as coverage for your spouse/domestic partner and/or child(ren). You do not need to enroll in Voluntary Life coverage to obtain Voluntary AD&D coverage and your coverage amounts do not need to be the same. However, you must be enrolled in Voluntary Life if you want to elect coverage for your spouse/domestic partner and/or child(ren). You pay the full cost of this coverage.
Voluntary Life coverage
Key terms:
- Evidence of Insurability (EOI): Also known as “evidence of good health” is the process by which Prudential determines if you are insurable for the amount of coverage you want.
- Guaranteed Issue (GI): The amount of Voluntary Life coverage you can get without providing EOI
Note: In order to apply for spouse/domestic partner/children Voluntary Life and Voluntary AD&D coverage, employee must also enroll.
| Coverage | Voluntary Life Coverage Options | Voluntary AD&D Coverage Options |
|---|---|---|
| Employee | $10,000 increments up to $500,000 (Guaranteed issue is $200,000)* | $10,000 increments up to $500,000 |
| Spouse/ Domestic Partner | $5,000 increments up to 100% of the employee's Voluntary Life to a max of $500,000 (Guaranteed Issue is $50,000)* | $5,000 increments up to $500,000 |
| Child(ren) | $1,000 increments up to $10,000 (Guaranteed issue is $10,000)* | Flat $10,000 benefit |
*Evidence of insurability is required for initial accounts over Guaranteed issue and for increases in coverage thereafter.
Voluntary Life premiums: employees, interns, spouses/domestic partners
The premium listed is per $1,000 of voluntary life coverage and payable in post-tax deductions each pay period. Rates are based on the employee’s attained age as of December 31st and premiums are re-set each January 1.
Voluntary Life premiums: children
The premium is $0.081 per $1,000 of voluntary life coverage and is payable in post-tax deductions each pay period. Elections and premiums cover all eligible children (single rate for all children).
| Age | Rate | Age | Rate |
|---|---|---|---|
| <25 | $0.0250 | 50 - 54 | $0.1350 |
| 25 - 29 | $0.0300 | 55 - 59 | $0.2425 |
| 30 - 34 | $0.0430 | 60 - 64 | $0.3850 |
| 35 - 39 | $0.0550 | 65 - 69 | $0.7400 |
| 40 - 44 | $0.0600 | 70 - 74 | $1.2050 |
| 45 - 49 | $0.0900 | 75+ | $1.7245 |
| Voluntary AD&D | All ages | $0.0090 |