It’s important to plan for your family’s financial security in case the unexpected happens. That’s why Parexel provides basic coverage and allows you to enroll in supplemental coverage during enrollment. You will also have the option to enroll in universal life insurance.
Parexel provides Basic Employee Life Insurance and Basic AD&D Insurance to assist you and your family in the event of a death or dismemberment. These benefits are fully paid by the company. Note: Company-paid coverage is automatic; you do not need to enroll.
Benefits are equal to:
- Basic Employee Life Insurance: 2 times your salary, up to a maximum benefit of $1,250,000.
- Basic Accidental Death & Dismemberment Insurance: 2 times your salary, up to a maximum benefit of $1,250,000.
Note, if you or your dependent become critically ill, you may be eligible for a one-time accelerated benefit equal to 80% of your life insurance benefit (up to a $500,000 maximum) through UNUM. You or your dependents are only eligible for this feature if life expectancy is less than 12 months. This benefit applies to both Basic Life Insurance and Supplemental Life Insurance.
You can purchase additional life and AD&D insurance for yourself, as well as coverage for your spouse and your child(ren). You pay the full cost of any supplemental life insurance and/or supplemental AD&D insurance coverage. If you want supplemental coverage, you must enroll during enrollment on the Aptia365 website.
- Voluntary Employee Life Insurance: Available in $10,000 increments up to a maximum benefit of $1,250,000.
- Voluntary Spouse Life Insurance: Available in $5,000 increments up to a maximum benefit of $300,000. You may purchase spouse life insurance without also purchasing supplemental employee life insurance.
- Voluntary Child Life Insurance: Available in $2,000 increments up to $20,000, for children from 14 days old up to age 26.
- Voluntary AD&D Insurance: Available in $10,000 increments up to a maximum benefit of $1,250,000; coverage may be purchased for just you or for you and your family.
Imputed income
Under federal income tax law, company-provided life insurance of more than $50,000 is considered a taxable benefit. This means that employees whose basic life insurance benefit exceeds $50,000 must pay taxes on the value of the “excess” benefits.
For example, an employee who is 45 years old with an annual salary of $175,000 would receive a Parexel-provided basic life insurance benefit of $350,000 (2 times salary). The taxable portion of the benefit is $300,000 ($350,000 minus $50,000), not the entire $350,000. The employee then refers to the IRS tax table, finds his age (45 years old), and identifies the rate he must use to calculate the cost (0.15).
He then divides his adjusted value of $300,000 by $1,000 and multiples it by the IRS tax table rate of 0.15. His total monthly imputed income (income he must pay taxes on) is $45.00.
He identifies that his personal tax bracket is 30%; he multiplies the $45.00 by 30% and identifies he will pay about $13.50 in taxes per month ($6.75 semi-monthly).
For more information regarding the IRS tax code, please visit the Group Term Life Insurance section of the IRS website .
Evidence of insurability
Life insurance above the guaranteed issue amount may require evidence of insurability (EOI). If you already have supplemental life insurance (for you or your spouse), previously issued EOI approvals will be honored up to the amount of your current coverage — you will not need to provide new EOI.
The guaranteed issue amounts for new policies are:
- Supplemental employee life insurance: $350,000
- Spouse life insurance: $50,000
- Child life insurance does not require evidence of insurability.
After electing coverage, you will receive more information if EOI is required.
In addition, you have the option to purchase universal life insurance from Transamerica. Universal life insurance contains a cash value that grows tax-deferred until funds are withdrawn. You also have the flexibility to change the amount and frequency of contribution rate payments as long as there is sufficient cash value in the policy to cover monthly deductions. Unlike term life insurance, your benefit will not decrease and your contribution rates will not increase as you age.
Universal life insurance may be purchased for you, your spouse, and your child(ren) and is available in the following amounts:
| Employee | Spouse | |
|---|---|---|
| $25,000 | $100,000 | $15,000 |
| $50,000 | $125,000 | Child |
| $75,000 | $150,000 | $10,000 |
Be sure to name a beneficiary
It’s important to designate a beneficiary to receive the benefit paid by a life insurance policy. As personal circumstances change, be sure to keep that information up to date. Visit the Aptia365 website or call 1-866-696-8683 to add or change a beneficiary.