Life and AD&D

Life Insurance

Life insurance is an important, basic tool in any financial plan. Cynet offers low-cost supplemental life insurance benefits through payroll deduction.

Plan Highlights

Accidental Death & Dismemberment (AD&D) benefits
Living (accelerated) benefits.
Waiver of premium.

Newly eligible employees and dependents (and all employees during this annual open enrollment) have special guarantee issue provisions with our Supplemental Life up to without regard to health history as follows:

$150,000 for employees
$25,000 for their spouse
$10,000 per child of supplemental life

(all eligible children for one low rate)

Electing a small amount of supplemental life benefits now may secure your ability to elect more later should your needs change.

Prudential's buy up rider allows any employee who purchases coverage when first offered, the ability to buy up their election, up to the guarantee issue limit above, at any later anniversary date (12/1 annually) with no health questions!

Rates are based on your age and the amount of coverage. As you ‘age up,’ your rates will change the as of the following plan anniversary. The per pay period cost will be calculated for you and rate tables are provided. Click here to view the rate table.

See plan details provided for more information.

Beneficiary Tips

Certain benefits like life insurance, some critical illness plans, and some payroll-sponsored Banking Accounts have a ‘survivor’ benefit that requires a beneficiary. Naming the right beneficiary is important.*

01

Community Property State

If you live in a community property state, your spouse must sign a waiver to relinquish rights to your life insurance for you to name someone else.

02

Review Your Coverage

Review your coverage every few years and after major life events to ensure coverage, of important financial/legal documents such as wills, living wills, trusts, Power of Attorneys, and beneficiaries are up to date.

03

Keep Beneficiaries Up-to-date

Remember, you can update your beneficiary any time as often as you’d like: https://access.paylocity.com

04

Life Insurance Beneficiary Guidelines

Always name a contingent beneficiary in case the primary beneficiary is deceased.
Beneficiaries should generally be adults, unless proper legal arrangements are in place.
Avoid naming minors without a trust or legal guardian to manage the funds.
Life insurance payouts go to the designated beneficiary, regardless of will contents.
Be cautious when naming lifelong dependents as beneficiaries, as it may affect their eligibility for government assistance.

05

Plan Property for Taxation Status

Most often, life insurance proceeds are tax free – but, naming the wrong beneficiary can create a taxable event.

06

Plan Ahead

Tell the person who you’ve left in charge so they know you have a life insurance policy, where it is and how to (easily) find it.

* Health Savings Account beneficiaries must be named directly with the financial institution (it cannot be done through Cynet).