Originally Posted by
DLax85
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.
I believe what the MEC's letter was trying to say was, that FDX is in fact going to have to cover some of your Optional Life premiums. As the amount that we pilots have to pay is capped, per the CBA. So, you will have to pay taxes on the premium amount that FDX covers, above that cap, even for optional insurance.
But, regardless of that, if the numbers that the MEC sent in the email are accurate...The MEC insurance is cheaper than the FDX optional life, without taking the imputed income taxes into account.