Basic Term Life Insurance

The amount of coverage that an employee may receive is based on his or her classification.

_{*"Annual compensation" means an employee's annual wage or salary as reported by his or her employer for the work performed as of the date of loss. It does not include earnings received as bonuses, overtime pay or other extra compensation.}

An employee may choose to waive any coverage over $50,000 at any time. However, if he or she waives the excess coverage and later wants to reinstate it, the employee may have to provide Evidence of Insurability (EOI) to Prudential. 

Basic Term Life Insurance benefit amounts over $50,000 are subject to income tax. The value of an employee's life insurance coverage over $50,000 will be added each year to his or her W-2 form as taxable income. This is called "imputed income."

When an employee reaches age 70, the total amount of the employee's Basic Term Life Insurance benefit will be reduced by 35%. The amount lost due to the age reduction is not eligible for port or conversion.

Coverage for an employee's eligible dependents equals $2,000 per person. Under the Basic Term Life Insurance plan, eligible dependents may include the employee's spouse or registered domestic partner, employee's natural child(ren), legally adopted child(ren), child(ren) placed with the employee for adoption prior to legal adoption* and the employee's stepchild(ren)** or Domestic Partner's child(ren)**. 

^{*A child placed with an employee for adoption prior to legal adoption is considered a Qualified Dependent from the date of placement for adoption.}

^{**To qualify for this benefit, a stepchild or registered domestic partner's child must reside with the Leidos participant.}

Refer Eligibility in the Participating in the Plans section for more information about eligibility requirements.