Basic Life Insurance

Benefits

Aflac provides Basic Life coverage to all active full and part-time employees in the amount of 2x your annual salary up to $2,000,000.* This coverage is provided by BMC at no cost to you.

*If you are working at age 70, your benefit will be reduced by 35%; at age 75, it will be reduced by 50%.

Understanding Imputed Income

The IRS considers the value of life insurance over $50,000 to be taxable income. This value is referred to as “imputed income.” If you have coverage over $50,000, you will see the value of such coverage reported on your annual W-2 statement. It will also be subject to FICA taxes and is reflected each payroll period on your paycheck stub as “GTL,” which stands for “group term life.”

Accessing Living Benefits

This important benefit is provided at no cost to you and is designed to help a terminally ill employee receive part of his or her life insurance benefits for medical expenses and ongoing care.

Payment of this benefit is subject to approval by Aflac and certification by a doctor that your life expectancy is less than 12 months.

In general, the benefit pays up to 80% of the value of your basic life insurance coverage, with a maximum of $500,000. You will receive the money in a single lump-sum payment.

When You Leave BMC

If you leave or retire from BMC you can continue your basic life insurance coverage as an individual policy and maintain this important protection for you and your family. Aflac will send you information about how to continue coverage.

Designating or Updating Beneficiary Information

Beneficiary designations for BMC’s plans are important to ensure your death benefits go directly to the people you intended to receive them. You’ll want to review your beneficiary designations after a major life event, such as a new baby, marriage, death or divorce.

To make changes to your life and accident death and dismemberment (AD&D) insurance beneficiaries, go to the MyBMC Rewards site, and click on the Beneficiaries tile. You can also call the Benefits Center at 1-877-BMC-4849 and select Your Benefits Resources when prompted.