Basic & Supplemental Life

Basic & Supplemental Life

Company-paid and supplemental benefits to protect your family in the event of death.

Providing protection from the unexpected for you and your family is an important part of the Baker Hughes benefits program.
Click here for an overview of your Life Insurance benefits.

Basic Life

Baker Hughes provides you with basic life coverage at two times (2x) your benefits base pay, up to $500,000, at no cost to you. You also have the option to purchase additional coverage for you and your family.

Supplemental Life

You can choose to buy additional Life Insurance for yourself, up to eight times (8x) your annual benefits base pay, at a discounted rate and pay for it directly from your paycheck. If you have dependents, you can also purchase Life Insurance at the discounted rates. For your spouse, you can choose from $25,000 to $250,000 of coverage and $10,000 of coverage for children.

Employee coverage

You're eligible to elect one times (1x) to eight times (8x) of your benefits base pay rounded to the next highest $1,000 if not already a multiple thereof (up to a maximum of $6 million).

Spouse coverage

Spousal coverage cannot exceed 100% of an employee’s total Life Insurance coverage. Elect coverage in $25,000 increments up to $250,000.

Dependent child coverage

Dependent Child coverage is $10,000 per covered child.

Evidence of Insurability for Supplemental Life

Evidence of Insurability (EOI) may be required for Supplemental Life. All employees can enroll or increase Supplemental Life coverage up to the guaranteed issue amount of $250,000 without EOI. A new Spouse Life election over $25,000 will require EOI. A Child Life election will not require EOI. If your Supplemental Life coverage level is grandfathered, you do not have to provide EOI.

If both you and your spouse are Baker Hughes employees

If both you and your spouse are Baker Hughes employees, each of you and any of your dependents can be covered only once under the Supplemental Life Insurance plan. Coverage can be through you or your spouse or a combination of the two of you, so long as no person is covered more than once, including your dependents. 

Benefits base pay 

Benefits base pay means your base annual earnings, including any before-tax contributions you make through the benefits program. This does not include any overtime pay or bonuses. For certain benefit rate calculations, your benefits base pay is determined in either September, your date of hire or your transfer date, whichever is later.

Imputed income

What’s imputed income?

The IRS requires income tax to be paid on the premiums Baker Hughes pays on your behalf for employer-paid Life (and Supplemental Life) Insurance greater than $50,000, which is known as “imputed income.”

This taxable income is applied each pay period. Here are two things to remember about Life Insurance benefits and imputed income.

  • The Life Insurance benefits themselves are not taxable.
  • You pay income tax only on the premiums, not on the amount of the benefit. For example, for $100,000 in coverage on a 45-year-old employee, imputed income on the premium is only $90 per year. 

You may elect to limit or cap your Basic Life Insurance coverage at $50,000 to avoid imputed income.


  • For all Life Insurance, coverage amounts are reduced by 50% the first of the year following your 70th birthday.
  • For all Life Insurance, you must be actively at work on the effective date. 
Levels of Coverage
check  Employee Life
check  Spouse Life
check  Child Life

Plan Overview Chart

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Related Benefits

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