Your Insurance Options

Customize Your Coverage

 When you’re deciding how much life insurance you need, you should consider several factors, for example:

• your marital status,
• the number of children you have and their ages,
• your spouse’s  employment status, and
• other financial assets available to your family in the event of your death.

If you are an eligible team member, you automatically receive basic team member Life and Accidental Death and Dismemberment (AD&D) insurance coverage from MPTN, at no cost to you.

In addition to your Basic Life insurance, you can purchase:

• Additional Life insurance coverage for yourself (called “Supplemental Life insurance”),
• Spousal Life insurance for your spouse, and
• Children’s Life insurance for your eligible dependent children.

Basic Team Member Life Insurance

MPTN automatically provides basic team member Life insurance coverage at no cost to you. Your basic coverage is equal to your annual earnings, up to a maximum of $500,000.

Coverage is provided in $1,000 increments, so to determine your coverage, your covered annual earnings are rounded to the next higher $1,000. For example, if your covered earnings are $24,300, your Basic Life insurance coverage equals $25,000.

For purposes of your life insurance coverage, “annual earnings” are defined as your usual annual rate of pay from the Employers as of your last day worked plus the tips and tokes, as determined by Employer, as of the date of loss.  It includes income actually received from commissions, but does not include:

• bonuses,
• overtime pay, shift differential or
• any other fringe benefit or extra compensation.

Commissions will be average for the lesser of:

• the 12 full calendar month period of your employment with your Employer just prior to the date of loss; or
• the period of actual employment with your Employer.

Calculating Your Imputed Income

The amount of your additional tax liability depends on your personal situation, but here’s an example to help you get an idea of the tax you might owe.

Suppose you are 50 years old and have Basic Life insurance coverage of $70,000. This means that you must pay taxes on the value of $20,000 of coverage. The monthly value for each $1,000 over $50,000 for someone who is 50 years old is $0.23. Therefore, your additional taxable income — or imputed income — is $4.60 per month (20 times $0.23), or $55.20 per year.

The $55.20 is not the tax you would pay — it is the income subject to FICA and income taxes. If your income tax rate were 30%, the additional annual tax you would pay for this coverage would be $16.56.

Contact your tax advisor or your insurance agent if you have questions about life insurance coverage and imputed income.

Changes in Covered Earnings

If your covered earnings increase during the year — for example, because you get a raise or a promotion — your Basic and Supplemental Life insurance coverage also increases automatically, up to the maximum amount allowed.

If your covered earnings decrease during the year for example, because you transferred to another job or because you change from full-time to part-time status — your insurance coverage is adjusted accordingly.

If you are absent from work due to an injury or illness, your change in coverage due to the change in your covered earnings will begin on the date you return to active employment.

Life Insurance Age Reductions

If you work past age 65, there will be no further increases in your Basic Life insurance coverage, even if your annual earnings increase. Your Basic Life insurance benefit will be reduced as follows:

Taxes on Imputed Income

Under federal tax law, the “value” of any employer-paid life insurance coverage above $50,000 is considered “imputed income” and is subject to taxes. The taxable value of your insurance is not the face amount of your life insurance coverage over $50,000. Instead, the Internal Revenue Service (IRS) assigns a dollar amount (premium) of taxable income for each $1,000 of life insurance over $50,000.

The IRS determines the value of life insurance above $50,000 using a life insurance table that reflects your age as of the last day of the year.

The following chart shows the monthly value of each $1,000 of coverage greater than $50,000. The monthly value is the amount added to your paycheck as taxable income on a monthly basis and is reported on your W-2 form.

Supplemental Team Member Life Insurance Coverage

If both you and your spouse are team members of MPTN:

• you may not purchase Spousal Life insurance coverage on each other, and
• you may not purchase Children’s Life insurance coverage on the same dependent child.

As an eligible team member, you may purchase additional life insurance — called “Supplemental Life insurance” — coverage for yourself. This coverage can be in the amount of one, two, three, four, or five times your covered annual earnings, rounded to the next higher $1,000. For example, suppose your covered earnings equal $22,300 and you want to purchase coverage of two times your covered earnings. Since two times $22,300 equals $44,600, you would purchase coverage of $45,000.

Although Basic Life insurance coverage is automatic, you may need to provide evidence of insurability — that is, proof of good health — before any supplemental coverage can begin. You will be required to provide proof of good health if you want to purchase coverage that is more than $350,000. For more information, see “When Coverage Begins” within this section.

You are limited to a maximum of $1,250,000 life insurance coverage for both Basic Life insurance and Supplemental Life insurance combined.

Spousal Life Insurance

If you are enrolled in Basic Life insurance under the MPTN Life Insurance Plan, you may also purchase coverage for your spouse, in the following amounts:

• $10,000
• $20,000
• $30,000
• $40,000
• $60,000
• $80,000
• $100,000

If you want to purchase Spousal Life insurance for more than $30,000, your spouse will need to provide proof of good health before any coverage can begin.

Please note the amount of your spouse’s life insurance will reduce by the same percentage and at the same time your life insurance reduces.

Children’s Life Insurance

If your child is also employed by MPTN… he or she can’t be covered as both a team member and a dependent.

If you are enrolled in Basic Life insurance under the MPTN Life Insurance Plan, you may also purchase coverage for your eligible dependent children, in the following amounts:

• $5,000
• $10,000

If you enroll for Children’s Life insurance coverage, each of your eligible dependent children is covered at the full amount. For example, if you have four children, ages 2 to 12, and you choose coverage of $5,000, each is covered for the full amount.

Infants are insured from the date of birth; however, there is a special limit on coverage for newborns. Whether you enroll for $5,000 or $10,000 of children’s coverage, if the child dies before he or she is 15 days old, the plan only pays $1,000.

AD&D Insurance for Team Members

If you die or are seriously injured as the result of a covered accident, Accidental Death and Dismemberment (AD&D) insurance coverage can pay benefits. MPTN provides AD&D insurance for the amount of your covered annual earnings, rounded to the next higher $1,000, up to a maximum of $500,000 of coverage. This coverage is the full benefit amount that is payable if you die in an accident. This is also known as the “death benefit.”

If you are seriously injured as the result of an accident, the plan pays a percentage of the death benefit.

The percentage of your AD&D benefit that you will receive depends on the type of loss you experience, as shown in the following chart:

* The most you will receive for any combination of covered losses from any one accident is the full amount of the benefit.

Evacuation and Repatriation

If you have a fatal accident that is covered by the plan at least 75 miles away from your principal place of residence, the plan will cover the cost of returning your remains to your home, up to a maximum benefit of $5,000.

For example, if you lose sight in one eye, your benefit would be 50% of your AD&D benefit amount or 50% of your earnings.

The loss of a foot means that all of the foot is cut off at or above the ankle joint. The loss of a hand means that ll four fingers are cut off at or above the knuckles joining each finger to the hand. Loss of sight means that the eye is totally blind and that no sight can be restored in that eye.

AD&D Age Reductions

Once you reach age 65, there will be no further increases in the death benefit portion of your AD&D insurance, even if your annual earnings increase.

Further, if you work past age 65, the death benefit portion of your AD&D insurance will be reduced as follows:

Seatbelt and Air Bag Benefits

The plan provides an additional benefit of $10,000 if you die as a result of a covered automobile accident while you were driving or riding in a private passenger car and you were wearing a properly fastened seatbelt at the time of the accident. (The position of the seatbelt must be confirmed in an official report of the accident or by the investigating officer.)

The plan will pay a second additional benefit of $5,000 if you die as a result of a covered automobile accident while you were driving or riding in a private passenger car equipped with air bags and you were wearing a properly fastened seatbelt.

A private passenger car means a validly registered four-wheel private passenger car (including employer-owned cars), station wagons, sport utility vehicles, pick-up trucks, and vans that are used only as private passenger cars.

If you die as a result of a covered automobile accident as described above and the car was equipped with seatbelts but it can’t be confirmed that your seatbelt was properly fastened, the plan will pay an additional benefit of $1,000 instead of $10,000.

SurvivorSupport® Service

The SurvivorSupport® service helps team members and their survivors develop strategies to protect resources, preserve current lifestyles, and build future security. At no time will the Ayco counselor offer or sell any product or service.

College Education Benefits

If you die in a covered accident, your eligible dependent children enrolled in college as full-time students can receive an additional benefit. Each academic term, each eligible dependent child will receive the lesser of:

• 12.5% of the death benefit for your AD&D coverage, or
• $12,500.

There is a maximum of eight benefit payments per lifetime to each eligible child and a maximum benefit amount of $100,000.

Other Benefits

In addition to Basic Life and AD&D insurance coverage, MPTN provides additional assistance to survivors and terminally ill team members as well as to team members who are traveling on business for MPTN.

Survivor Assistance

You and your dependents have access to SurvivorSupport®, a personalized financial counseling service offered through The Ayco Company. This service provides expert, objective financial counseling to terminally ill team members and to survivors of team members who die, at no cost to them. This service is also extended to team members upon the terminal illness or death of their spouse, if the spouse is enrolled for life insurance coverage.

For more information, you may contact Human Resources toll free at 1-888-287-4369.

Coverage While Traveling on Business

When you are traveling on business more than 100 miles from home, you can obtain emergency medical and legal resources 26 hours a day through Assist America®. You have access to a global network of qualified professionals trained to manage any travel emergency.

If you are traveling and need assistance, you should contact Assist America at 1-800-445-0402.

Spouses traveling on business with team members are not eligible for this coverage.

What’s Not Covered

If a covered person’s death results from suicide during the first two years that life insurance coverage is in effect, no benefits from Supplemental or Dependent Life insurance coverage will be paid.

AD&D coverage is for losses caused by accidents. Benefits will not be paid for losses caused by, contributed to, or resulting from any of the following:

• Disease of the body or diagnostic, medical or surgical treatment of mental disorder as set forth in the latest edition of the Diagnostic and Statistical Manual of Mental Disorders,
• Suicide, self-destruction while sane, intentionally self-inflicted injury while sane, or self-inflicted injury while insane,
• War, declared or undeclared, or any act of war,
• Active participation in a riot,
• Attempt to commit or commission of a crime under state, federal or tribal law,
• The voluntary use of any controlled substance as defined in Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970, as now or hereafter amended, unless used according to the prescription or direction of your doctor, or
• Operating any motorized vehicle while intoxicated. (Intoxicated means that the individual’s blood alcohol level equals or exceeds the legal limit for operating a motor vehicle in the state where the accident occurred.)