You never know what life is going to throw at you, so it's important to be prepared for the unexpected. That means having insurance coverage, so that you and your family are taken care of in case of injury, accident, death, or other eventualities.
If you work for Verizon, your benefits package can help with that. It includes insurance policies for yourself, plus optional policies for your family. What kind of coverage do you have under these policies and what can you expect from them?
Here's a basic rundown of insurance coverage under your Verizon benefits.
Verizon Insurance Eligibility
As a Verizon employee, the Company provides you with a Basic Life insurance policy, as well as Accidental Death and Dismemberment (AD&D) insurance, which pays out if you are injured or killed in an accident. The Basic Life and AD&D policies you qualify for automatically, but you also have the option to get supplemental insurance for yourself and AD&D coverage for your spouse or partner and your eligible children.
You're eligible for insurance coverage on the first day of the month after you have completed three months of full-time or part-time credited service as a Verizon employee. So, if you started work at the Company on May 15th and completed your first three months of eligible employment on August 15th, then your insurance eligibility would begin on September 1st.
The Company pays the full cost of premiums for Basic Life and AD&D insurance for you, the Verizon employee. If you decide you want supplemental insurance for yourself or coverage for your eligible family members, you'll pay the premiums on those policies via payroll deduction on your after-tax salary. You also have the opportunity each year to review your choices and make changes to meet your current needs - e.g. if you want additional supplemental insurance or coverage for other family members.
Verizon Insurance Coverage Amount
Your Basic Life insurance coverage amount is equal to your Benefit Bearing Wage (BBW), rounded up to the next $1,000. Your BBW is your annual base pay, plus any continuing benefits, incentives, awards, or commissions. It includes things like annual bonuses and profit sharing. It doesn't include overtime or differentials.
If your annual base pay is $65,000, and you receive a $200 bonus and $150 worth commissions in a given year, then your BBW for that year would be $65,350, and your insurance coverage would be $66,000. As your Benefit Bearing Wage changes, your coverage automatically changes as well. So, if you get a raise, your coverage increases.
Your AD&D coverage is also equal to your BBW, adjusted annually. If you're injured, dismembered, or lose your eyesight as a result of an accident, and the injury is total or permanent, then the benefit is paid out to you with the payout amount being proportional to the extent of your injury. If you're killed in an accident, the money will be paid out to your specified beneficiary, on top of your basic life insurance benefit.
Verizon Retirement Benefits Coverage
What happens to your insurance coverage when you retire? If you have a service or a disability pension under the Verizon Pension Plan, then Verizon will continue paying your Basic Life insurance after your Verizon retirement - but not the full amount. Beginning at age 66, your insurance coverage will be reduced by 10 percent each year, until you reach age 70. Once you turn 70, your coverage will be equal to half of your BBW at the age of your retirement. Your coverage continues for the rest of your life at that fixed amount, paid for by Verizon.
If you've chosen to get any supplemental insurance, this would also continue on the same diminishing schedule, and the costs will be deducted from your monthly Verizon Pension check. If you choose to take your pension in a lump sum instead of monthly payments, then the supplemental insurance premiums will be billed to you directly.
Your AD&D coverage ceases at the end of the month in which you retire, as does any coverage you may have for your partner, children, or other family members. So, if you retire on the 12th and you or a covered family member suffers an accident on the 26th, you'll receive the full benefit amount. If an accident occurs on or after the first of the following month, you'll no longer be eligible.
Insurance coverage can be a complex and somewhat technical topic, but it's important to understand your coverage and what it entails, including both your obligations and your entitlements.
If you have any questions about your Verizon insurance coverage, either as a policy holder or as a beneficiary, please see the Summary Plan Description for the Survivor Benefits Program for Mid-Atlantic Associates.
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated nor endorsed by Verizon Communications Inc., Verizon Wireless, or any other subsidiary of Verizon. Neither Hapanowicz & Associates, Hapanowicz & Associates Wealth Management nor LPL Financial are affiliated with any of the other entities referenced on this website. This should not be construed as an endorsement of a particular firm by any CWA-Local including 13000/13500 as well as any IBEW-Local.