Originally Posted by
KnightFlyer
Help me translate the FDX MEC Life Plan email and what the best game plan is.
If you have the current CBA Option Life (Pilot) $300k + $50k spouse and want to keep the same coverage, you can enroll in the FDX MEC Life plan and receive the same coverage but pay less monthly and avoid taxes on imputed income.
In order to not have both coverages, you need to dis-enroll from the CBA Optional Life plan nlt Nov 8th (at fedex.ehr.com) and then enroll in the FDX MEC plan after that (Nov 10th thru Jan 10th).
Is that how you read it?
I believe "imputed income" only applies when FDX is paying your insurance premium ---- not if you are buying additional life insurance on top of the $800K FEDEX provides to everyone automatically.
And yes, while you do pay income taxes on the imputed income --- effectively making this insurance monthly cost = Imputed Monthly Income x (1 - total FED + State Marginal Tax Rate) --- I think you will find the policies FEDEX actually pays for are actually cheaper than any policy the MEC or ALPA can offer.
Private company (e.g. USAA) level term policies are typically the cheapest; however, the lowest rates will be for non-smokers, who are willing to take a physical exams which look at their weight, BMI, cholesterol etc.
It's always nice to have at least a portion of you life insurance not dependent on your specific employment or your specific membership in a specific union.
That way, if your job situation changes somehow, you're still insured.
YMMV.