Company-Provided Life and AD&D Insurance

Company paid coverage is available to all regular full-time employees, their spouses, and dependent children up to age 26. You do not need to enroll in these benefits, they are automatically provided to you.

The life insurance policy issues a lump sum payment to your beneficiary upon your death.  The AD&D policy also pays a lump sum benefit, but only when your loss of life, function or limb is due to an accident.

Your company-provided Life Insurance coverage amount is equal to 1 1/2 times your annual salary*, up to $1 million. Benefits are defined and paid according to plan provisions including, but not limited to, earnings definitions and age-based reductions when you are age 70 or older. You also receive company-provided Accidental Death and Dismemberment (AD&D) coverage in the same amount.

*After an employee has a full calendar year's worth of earnings on Gallagher payroll, the coverage amount will transition to an earnings-based formula that recognizes both salary and bonus.

Gallagher pays for Dependent Life Insurance for your eligible family members as well.  Dependent Life Insurance coverage is equal to:

• $5,000 for your spouse or eligible domestic partner, and/or:
• $2,500 for each eligible dependent child from birth to age 26.

Imputed income is the IRS term for the value of any benefit or service that should be considered income for the purposes of calculating federal taxes. Under current IRS provisions, imputed income applies to the value of employer-provided life insurance coverage greater than $50,000. If this applies to you, you will see a line item on your paycheck called W2GRP.

Check your life insurance beneficiary designations regularly to make sure they are still in line with your wishes. Life insurance benefits are administered through the Prudential site; to designate, verify and/or make changes to your beneficiary designations, click here to access the Prudential site.