MMC Benefits Handbook
Cost of Coverage
The cost of Personal Life Insurance coverage is based on a monthly rate per $1,000 based on your age at the time the policy is issued to you and whether or not you use tobacco.
For specific rates, contact Mercer Health & Benefits Administration.
Will my costs change?
Costs will change only if you change your coverage amount.
Are the rates different for smokers?
Yes.
Taxes
You pay for your Personal Life Insurance coverage with after-tax dollars.
Is the benefit subject to tax?
The benefit payment is not subject to federal income taxes and in most cases state income taxes.
The death benefit may be subject to federal estate taxes.
Tax rules change from time to time. Please note that the information contained herein must not be construed as tax advice, which you can receive only from a professional tax advisor, who should be consulted on federal, state, income, gift and estate tax questions.