SCAN automatically provides life and AD&D insurance to provide financial assistance to you and your family during time of loss and hardship. SCAN provides coverage at no cost for eligible employees equal to two-times earnings up to $750,000. The Accidental Death & Dismemberment (AD&D) pays you and your beneficiary a benefit for the loss of life or other injury resulting from a covered accident.
Table I Taxation: While SCAN pays the premium for this coverage, the value (benefit) above $50,000 is taxable to you per IRS guidelines, otherwise known as Table I taxation. This amount will be imputed to your income and is calculated using the IRS Table I rates. The taxation will be reflected as Group Term Life on your check stub.
To avoid Table I taxation, you may request only $50,000 of employer-sponsored life insurance. If you wish to later change to a 2x your earnings benefit, your election will be subject to Evidence of Insurability.
It’s important to designate a beneficiary to receive the benefit provided by a life insurance policy. Naming a beneficiary ensures clarity in the transfer of your benefit. Without a named beneficiary, there may be delays, additional paperwork, and potential expenses to ensure your intentions are honored. SCAN’s enrollment portal will require you to name your beneficiary for your life insurance coverage.
You may choose to purchase life and AD&D coverage for yourself and your eligible dependents beyond what SCAN offers to employees. If you elect as a new hire, coverage is guaranteed up to the Guarantee Issue (GI) amounts. Any election about the GI amount or elections made outside of your initial enrollment window require Evidence of Insurability (EOI), a short medical underwriting questionnaire. Elections subject to EOI are not in effect until you receive written approval from the insurance carrier.
Employee Life and AD&D: You may elect in $10,000 increments up to $500,000, with a guarantee issue amount of $200,000.
Spouse Life and AD&D: If you elect for yourself, you may elect for a spouse in $5,000 increments up to $100,000, with a guarantee issue amount of $50,000. Your spouse election cannot exceed 100% of the election for yourself.
Child Life and AD&D: If you elect for yourself, you may elect a flat $10,000 life insurance benefit for your child(ren) under age 26.
