1.How well does your employer-paid life insurance benefit level (flat dollar or salary multiple) meet employee needs and market benchmarks?
Market benchmark: 1–2x annual salary. Flat-dollar amounts (e.g., $50,000) are common for hourly workforces.
2.How thoroughly do you manage the imputed income tax liability for employer-paid life insurance above $50,000?
IRC §79 requires imputed income on employer-paid life insurance above $50,000. Employees must be notified and W-2 reporting is required.
3.How well does your AD&D benefit design complement your life insurance and address accidental death and dismemberment scenarios?
AD&D typically pays 100% for accidental death and a percentage for dismemberment. Benefit schedules vary significantly.
4.How well does your life insurance plan address portability and conversion rights for departing or retiring employees?
Portability allows employees to continue group coverage. Conversion allows conversion to individual coverage without evidence of insurability.
5.How effectively do you manage beneficiary designation updates and ensure employees have current designations on file?
Outdated beneficiary designations are one of the most common and costly life insurance administration failures.
This tool provides educational decision support only. Results are not legal, tax, actuarial, or insurance advice. Validate all outputs against current plan documents, applicable law, and qualified professional guidance. Scoring version 1.0 · Reference year 2026.
