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.
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.
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.
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).
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 is $10,000 per covered child.
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, 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 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.
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.
You may elect to limit or cap your Basic Life Insurance coverage at $50,000 to avoid imputed income.