Cost of Supplemental Life Insurance

You pay for supplemental life insurance, if you choose it. The cost to you depends on your age and the amount of supplemental life insurance you desire. See the Contribution Rate Chart or more information.

The cost of supplemental life insurance will increase with your age or with an increase in the amount of coverage you have. An increase in cost resulting from a change in your age will become effective on the first of the month in which you have a birthday when your age bracket changes. An increase in the amount of coverage resulting from an increase in your base pay will become effective on the first of the month on or following the date the change becomes effective. You pay for your portion of the premiums for your supplemental life insurance with after-tax dollars.

Special Tax Considerations

Under current tax laws, the value of your spouse’s life insurance coverage is subject to federal income, Massachusetts state income, and Social Security taxes. These taxable amounts are called imputed income. Imputed Income for your spouse’s life insurance benefit will be reported as income on each paycheck, and will be included in the taxable earnings shown on your W-2 Form. Coverage for your spouse is subject to imputed income for tax purposes.

Changing or Stopping Your Supplemental Life Insurance

Because your premiums for group supplemental life insurance are after-tax contributions, there are no restrictions as to when you can change your amount of coverage, stop your coverage, or begin your coverage. The insurance company may require you to provide evidence of insurability if you increase your coverage or begin coverage after your initial enrollment period of the 30 days following your benefits orientation.