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Life Insurance and Accidental Death & Dismemberment (AD&D)

Basic Life and AD&D

VMware provides Basic Life and Accidental Death and Dismemberment (AD&D) Insurance, through New York Life, to help protect you and your loved ones, at no cost to you. All regular full-time employees are automatically covered for two times your annual salary to a maximum $2,000,000 each for Basic Life Insurance and for Accidental Death and Dismemberment Insurance.  Commissioned employees are automatically covered for two times your on-target earnings up to a maximum of $2,000,000. AD&D pays an additional benefit (two times your annual base salary to a maximum benefit of $2,000,000) to your beneficiary if you die, or pays a benefit to you if you suffer an injury due to a covered accident.

The value of your Basic Life coverage over $50,000 is considered taxable income to you. If you elect the $50,000 Basic Life coverage amount, you will avoid this taxable income. 

Supplemental Life Insurance

As a New Hire, you can purchase additional Life Insurance coverage for yourself, your spouse/domestic partner, and your dependent children. Supplemental Life Insurance premiums are taken from your paycheck on an after-tax basis.

You may purchase Supplemental Life Insurance for yourself up to a maximum of $2,000,000 or five times your basic annual earnings (whichever is less) in $10,000 increments. You must provide Evidence of Insurability (EOI) if you apply for Supplemental Life Insurance greater than $750,000.

You may purchase Supplemental Life Insurance for your spouse or domestic partner up to a maximum of $375,000, in $5,000 increments. You must provide evidence of good health if you apply for Life Insurance for your spouse or domestic partner greater than $100,000. After your New Hire event closes, any other requests to increase Supplemental Life Insurance will require you provide evidence of insurability.

The monthly cost of coverage for you and your spouse/domestic partner is based on age:

You may purchase Supplemental Life Insurance for your dependent children up to age 26. Child Supplemental Life coverage is $20,000. For children under 6 months old the maximum is $500. One low premium will insure all your eligible children. Evidence of good health is not required for dependent children. Foster Children and Legal Guardianships are not eligible for Child Supplemental Life Insurance.

How Much Life Insurance Do You Need?

Many factors can go into determining the amount of life insurance that you need. A simple rule of thumb is that you should leave about 70% of current income to the surviving family. The presumption being that the insured breadwinner uses about 30% of family income for himself / herself.

For additional resources to help you estimate how much life insurance you need, check out New York Life’s My Life Check-Up. The My Life Check-Up is simple, quick and will give you a ballpark idea of how much coverage you may need.

Filing a Life Insurance Claim

If you need to file a life insurance claim, please contact HR Source [VMware network access required] for assistance.

For more information on Basic Life, AD&D or Supplemental Life Insurance, see the Basic Life Certificate, AD&D Certificate or the Supplemental Life Certificate.

Losing a loved one can be overwhelming, visit the Loss of a Loved One page for guidance and resources during this tough time.