Group Life & Accidental Death & Dismemberment (AD&D) Insurance – New York Life

Carleton auto enrolls employees in group term life and AD&D insurance, and pays for the premium. Coverage is 3.5 times your annual earnings, up to a maximum of $500,000.  Coverage is rounded to the next $1,000. 

The premium is considered taxable income for coverage amounts above $50,000, and will be added to the W-2 as imputed income. Employees can choose to limit their coverage to $50,000.

Coverage is reduced by age starting at age 65.

Voluntary Life and AD&D Insurance – New York Life

Carleton offers employees the option to elect voluntary life and (AD&D) insurance, this plan is intended to supplement the Group Life and AD&D insurance. Employees are responsible for paying the premium.

Employees in their initial eligibility period are eligible to elect life insurance coverage up to the guaranteed issue (GI) amount.  The GI amount is not subject to the evidence of insurability underwriting.  The GI and maximum coverage amounts are as follows:

  • Employee GI: $250,000. Maximum benefit is $750,000, employees can elect coverage in $10,000 increments. 
  • Spouse/Domestic Partner GI: $40,000. Maximum benefit is $250,000, not to exceed 50% of the employee’s benefit. Coverage can be elected in $5,000 increments.
  • Child(ren) birth to age 26 GI: $5,000 or $10,000 coverage amount.  Evidence of insurability is not required. 

Evidence of insurability will need to be completed when an employee elects coverage above the GI amounts or if they previously had a denied application.

Long-Term Disability (LTD) Insurance – New York Life

Carleton offers Voluntary LTD plan. If the employee chooses to elect the benefit the premium is shared equally between the employee and Carleton (50/50). LTD provides income protection up to 60% of the employees annual earnings, with a maximum benefit up to $10,000 per month, following a 90 day waiting period.  

Per the LTD insurance policy an employee is disabled when, due to the same injury or illness when they are unable to:

  1. perform the material duties of their regular occupation,
  2. earn more than 80% of their indexed monthly earnings; and
  3. perform the material duties of any occupation for which they are reasonably qualified for based on education, training or experience.  After disability benefits have been paid for 24 months.

Employees who elect this benefit in their initial benefit eligibility period will not be required to complete the evidence of insurability. This benefit coordinates with benefits from other sources such as Social Security, when needed.

Disability coverage and payment is subject to age reduction starting at age 60, see the schedule below:

LTD Age Reduction Schedule

Age at time of DisabilityDuration of LTD Payments
Prior to age 60Up to age 65
60-64Up to 5 years
65-68Up to age 70
69 and olderUp to 1 year

Plan Documents and Forms