Vocations · Professional Development

Know what your job’s
life insurance pays.

Life insurance through work is usually a few clicks at enrollment and then forgotten, until the beneficiary is out of date or a child is named directly. Enter what the plan gives you, who gets it, and check the eight things that cause trouble later.

Review coverageWhat you get

Your reviews

The worked example is made up: two times salary plus $100,000 supplemental with a six-year-old as backup beneficiary, and a flat $50,000 policy whose shares add up to 90%. Saved on this device only.

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What you get

Vocations · Professional DevelopmentFree

What you finish with
A record per plan: employer, age, salary, basic coverage as a multiple or flat amount, supplemental coverage, beneficiaries with level, share and whether a minor, and eight plan checks. Works out total coverage, the multiple of salary and imputed income from the IRS table; flags shares that do not add to 100 percent, no contingent beneficiary, a minor named directly, no beneficiary and coverage ending with the job.
Who it is for
Employees starting a new job or choosing benefits at open enrollment, and young adults reading their first benefits package.
Format
Browser checklist with a saved record per plan. Prints one review, every review in a table or a blank sheet; downloads a spreadsheet (.csv); exports and imports a file.
Access
Free. No account, no sign-in and nothing to install. Everything you type stays in this browser; nothing is sent to Caveat.
Where it lives
The Professional Development space in Caveat Vocations.
Support
Questions about access, an order or a correction: team@caveatacademic.com.

How to use it

  1. Enter your age, salary and the basic coverage.
  2. Add any supplemental coverage.
  3. List beneficiaries with shares that add to 100.
  4. Work through the eight checks with the plan summary.
  5. Update the benefits portal to match.

Review coverage

The $50,000 rule

Imputed income on coverage over $50,000Age at year endPer $1,000 a month$144,000 basicUnder 30$0.05 to $0.06$56 to $68 a year30 to 39$0.08 to $0.09$90 to $102 a year40 to 49$0.10 to $0.15$113 to $169 a year50 to 59$0.23 to $0.43$259 to $485 a year60 to 69$0.66 to $1.27$744 to $1,433 a yearImputed income on coverage over $50,000Under 30Per $1,000 a month: $0.05 to $0.06$144,000 basic: $56 to $68 a year30 to 39Per $1,000 a month: $0.08 to $0.09$144,000 basic: $90 to $102 a year40 to 49Per $1,000 a month: $0.10 to $0.15$144,000 basic: $113 to $169 a year50 to 59Per $1,000 a month: $0.23 to $0.43$144,000 basic: $259 to $485 a year60 to 69Per $1,000 a month: $0.66 to $1.27$144,000 basic: $744 to $1,433 a year
The amount is added to your taxable wages; the tax on it is a fraction of the figure. Coverage you pay for with after-tax money is not counted.

Primary and contingent

Primary beneficiaries are paid first; contingent ones only if no primary is living. Shares within each level should add to 100 percent. A will does not change a beneficiary form: the form on file with the plan wins.

How much is enough

A common rough start is several times your income, adjusted for debts, children’s ages and savings. Workplace coverage is cheap and easy, but it usually ends with the job, so it rarely replaces a policy of your own if others depend on you.

Sources

  1. Internal Revenue Service. Publication 15-B, Employer’s Tax Guide to Fringe Benefits: group-term life insurance and Table 2 (irs.gov).
  2. National Association of Insurance Commissioners. Life insurance buyer’s guide (content.naic.org).
  3. U.S. Department of Labor, Employee Benefits Security Administration. Life changes and your benefits (dol.gov/ebsa).
  4. Uniform Law Commission. Uniform Transfers to Minors Act (uniformlaws.org).

The worked examples are made up. Plans differ; the plan’s certificate and summary decide what it pays. This page does arithmetic on numbers you enter and is not tax, legal or insurance advice. Nothing you type is sent to Caveat. Support: team@caveatacademic.com.