Life and AD&D Insurance

Basic Life Insurance – You receive Basic Life insurance at no cost to you, and you do not need to enroll in any other health and protection program to be covered. Basic Life insures you for 1.5 times your annual base salary, up to a maximum of $1,000,000, payable to your designated beneficiaries.

Basic AD&D is included with your Basic Life coverage and provides a benefit equal to 1.5 times your annual base salary if your death results from an accident. Additional benefits are available for dismemberment (i.e., the loss of a hand, foot or eye) and vary based on the loss. This coverage is also provided at no cost to you.

How your benefit is calculated: Annual base salary excludes overtime, bonuses, shift premiums and other income that may increase your paycheck. Commissions are included for Sales Representatives based on a one-year average. Benefits are determined based on your annual base salary at the time of claim.

Imputed Income: Under current tax laws, imputed income is the value of your Basic Life insurance that exceeds $50,000 and is subject to federal income, Social Security and state income taxes, if applicable. This imputed income amount will be included in your paycheck and shown on your W-2 statement.

Voluntary Life and AD&D: In addition to Basic Life and AD&D, eligible employees may purchase additional Voluntary Life and AD&D insurance through Prudential at favorable group rates. Participants pay 100% of the premium, and this coverage is in addition to any benefit paid by the company-provided coverages. Note: It is important to provide beneficiary information during the enrollment process and keep this information up to date. If you decline Voluntary Life insurance when first eligible or if you elect coverage and wish to increase your benefit amount at a later date, evidence of insurability may be required before coverage is approved.

• For you: 1 to 5 times your annual base salary, up to $1,000,000
• For your spouse/domestic partner: $10,000 increments up to $100,000
• For your children: $2,000 increments up to $10,000
• Voluntary AD&D – Employee Only: 1 to 5 times your annual base salary if your death results from an accident
• Voluntary AD&D – Employee + Family: 1 to 5 times your annual base salary. Spouse/domestic partner coverage equals 50% of the principal sum and child coverage equals 10% of the principal sum. Additional benefits are available for dismemberment and vary based on the loss.

Employees who elect up to $500,000 of Voluntary Life Insurance, and/or up to $20,000 of Spouse Life Insurance when initially eligible will be provided with the elected coverage amount without the need to provide Evidence of Insurability.

However, Evidence of Insurability may be required if:

• Voluntary Life Insurance or Spouse Life Insurance is not elected when you are initially eligible, or
• You are currently enrolled in Voluntary Life or Spouse Life Insurance and request an increase of more than one salary tier during Open Enrollment.

Prudential, in their sole discretion, would decide to either approve or deny the request for additional or increased life insurance coverage.

Company Paid Life Insurance/AD&D and Employee Paid Life/AD&D Insurance are subject to automatic reduction based on age. Coverage amounts will be reduced to:

• 65% of the original value at age 65
• 50% of the original value at age 70