Life Insurance
Shields Health provides basic life and accidental death and dismemberment (AD&D) insurance to eligible employees working 32 or more hours per week. You also have the opportunity to purchase voluntary coverage.
Basic life and AD&D insurance
You're automatically covered by company-paid basic life and AD&D insurance through New York Life to assist you and your family in the event of your death or dismemberment. There is no cost to you, and you do not need to enroll.
Benefits are equal to:
- Basic life insurance: 1x your salary, up to a maximum of $50,000
- Basic AD&D insurance: 1x your salary, up to a maximum of $50,000
Be sure to name a beneficiary
Designate a beneficiary (and keep it up-to-date) in order to ensure your life insurance policy's benefit is paid out according to your wishes. Visit the Workday website to add or change a beneficiary.
What is AD&D insurance?
If you lose your life, sight, hearing, speech, or use of your limb(s) in an accident, AD&D insurance provides additional benefits to help keep your family financially secure. AD&D benefits are paid as a percentage of your coverage amount — from 50% to 100% — depending on the type of loss.
Taxation of company-paid life insurance
The IRS requires you to pay taxes on the value of any company-paid life insurance coverage over $50,000. This is called imputed income; you’ll notice it on your pay statements and your W-2.
Voluntary life and AD&D insurance options
For more financial protection beyond Shields Health's basic coverage, you can buy voluntary life and AD&D insurance for yourself and your family members. You can enroll as a new hire, during Open Enrollment, or if you have a qualifying life event. You pay the full cost of this coverage, which is provided through New York Life. You must purchase coverage for yourself in order to purchase it for your dependents.
| Who are you covering: | Life insurance: | AD&D insurance: |
|---|---|---|
| Yourself | Available in $10,000 increments, up to 7 times your salary (maximum of $500,000). | Available in $10,000 increments, up to 7 times your salary (maximum of $500,000). |
| Your spouse | Available in $5,000 increments, up to a maximum of $100,000 (not to exceed your coverage). | Benefit will be 100% of your coverage if you cover just your spouse and child(ren). |
| Your children | Available in a flat coverage amount of $1,000 for newborns through 6 months old or increments of $1,000 up to maximum of $10,000 for children age 6 months to age 19 (26 full time student). | Benefit will be 100% of your coverage if you cover just your spouse and child(ren). |
Evidence of insurability
Voluntary life insurance for you and your spouse/partner over a certain benefit amount may require evidence of insurability (EOI), or proof of good health. You will receive more information after electing coverage if EOI is required. The amount of coverage available without EOI is known as the Guaranteed Issue (GI) amount.
Disability Insurance
A serious illness or injury that prevents you from working can cause significant financial hardship for your family. Disability insurance, provided through New York Life, replaces a portion of your income to help you continue paying your bills and meeting your financial obligations during this difficult time. Our employee disability insurance program offers financial protection for short-term and long-term disabilities.
Short-term disability
- Eligible employees working 32 or more hours per week receive automatic, company-paid coverage; there’s no need to enroll.
- Benefits begin on the 8th day for accident/illness and continue for for up to 12 weeks.
- Payments are equal to 60% of your salary, up to a maximum of $500 per week.
Long-term disability
- You receive automatic, company-paid coverage; there’s no need to enroll.
- Benefits begin on the 91st day of disability (141st for MA employees) and continue up to Social Security age.
- Payments are equal to 60% of your salary, up to a maximum of $10,000 per month.