Death for 100% and AD&D for 90% of multinational and local leading companies.
Plan Eligibility
Pension plan members. Common to extend benefits to non-members but often at a lower level.
Dependent Coverage
At discretion of company. If dependent coverage is not paid for by company, employees can be allowed to include their dependents at their own cost.
Benefit Description
Death – Lump sum for death in service in most pension plans, equal to three or four times annual salary. DB plan: Spouse’s pension is paid at 50% level of the member’s prospective pension but may be calculated as a percentage of member’s salary or accrued pension. Death in retirement and spouse’s benefits are a continuation of member’s pension, commonly at 50% of member’s pension prior to exchange for cash at retirement. Dependent children’s pensions are payable. DC plan: Spouse’s pension may be provided as a percentage of member’s salary or as an additional lump sum. AD&D – Lump sum of up to six times annual salary for accident during business.
Employee Contribution
Death – None unless a part of the pension plan. AD&D – None.
Plan Financing
Insurance policy.
Is Coverage Part of Another Plan?
Death – No; can be part of retirement plan. AD&D – Rider to life insurance.
