DLax85

Did anyone else notice a $37.50 increase in their monthly Excess Life insurance "implied earnings" on their 31 Jul pay statement?

Looking at some past statements the "value" of this benefit had been constant at $75 since Jan 07 ---- but was now $112.50 on my latest earnings statement.

Was there an increase in the amount of company provided life insurance for all?

KnightFlyer

Happy Birthday!

Did you recently enter a new age group? 35-39, 40-44, 45-49? You can't be 50 yet are you?

The rate per $1000 probably went up (just like everything else).

__________________
Contract 2010 - Full retirement maintained at 60

DLax85

OK --- you nailed it.

Though it's amazing that FEDEX is "pricing/valuing" their $800K policy at $112.50 per month, given that I purchased a $700K, 20-year, level term policy at age 43 (2 years ago) from USAA for $63 a month.

Since it's level term --- that price will not change over the life of the policy.

I wonder who FEDEX is using to underwrite the policy they buy for us...or do they self-insure when it comes to pilot life insurance?

Perhaps the difference is that I had to take a physical and verify I was a non-smoker for the USAA policy, while the policy FEDEX buys covers all of our pilots --- regardless of size, health, lifestyle, etc.

Thanks again for cracking the code.

slowplay

FedEx doesn't set the pricing, the IRS does in their code. The first $50K can be a free corporate benefit. Anything above that creates imputed income according to the IRS table. Just wait until you get to be 55 or 60 to enjoy some real "cheap" insurance....

KnightFlyer

$173 in the 50-54 "club"

__________________
Contract 2010 - Full retirement maintained at 60

DLax85

The way I see it the "cost to the pilot" is equal to the...

Monthly Imputed IRS Value x Your Applicable Overall Marginal Tax Rate

(e.g. 33% Federal marginal rate + the applicable State marginal rate)

As long as that "cost" is cheaper than what you can get from a private company (e.g. USAA) you're better off keeping the company insurance.