Life insurance can be offered either in a flat dollar amount or based on salary up to a maximum as determined by the insurance carrier.
What is a non-evidence maximum (also called a non-evidence limit)?
Each employee will be covered without medical underwriting up to the NEM, and excess amounts of coverage over the NEM are subject to medical underwriting. This will involve a medical questionnaire and, on occasion, vital testing to ensure they have the opportunity to obtain the full coverage they qualify for.
Why is designating a beneficiary so important?
This is the person(s) who will receive the benefit upon your passing. If a beneficiary is not named your benefit will be payable to your estate and may be subject to taxes and may even go into probate (the legal process that confirms the appointment of the executor and the validity of a will); it may also be made available to creditors. It is crucial that beneficiaries are kept up to date should life events occur. When in doubt as to who your beneficiary is, a new form can be submitted at any time to ensure that your proceeds are paid to the correct individual(s).