U.S. LIFE INSURANCE

Basic Life and Accident Insurance

To give you and your family protection and extra peace of mind, Caterpillar provides you with the following coverage, at no cost to you.*

*If you’re a tobacco user, you’ll be required to pay some of the premium.

Coverage Amount

Management, Support and Non-Bargained Hourly Employees

UAW and Mapleton Employees

South Milwaukee and Denison Employees

Basic Life Banner_South Milwaukee and Denison

Imputed Income

The IRS requires that you pay taxes on the premium — called imputed income — that Caterpillar pays on your behalf for life insurance in excess of $50,000. The taxes you pay are based on tables established by the IRS and are small for most employees. This ensures benefits won’t be taxable if paid out to a beneficiary. If your coverage amount exceeds $50,000, you’ll see an “Imputed Income” line item on your paystub — you’ll pay taxes on the amount shown.

Additional Life & Accident Coverage

Caterpillar offers you these additional life and accident insurance options:

Optional Life Insurance (you can elect and pay for this coverage)
Dependent Life Insurance (you can elect and pay for this coverage)
Business Travel Accident Insurance (company-paid)

PREMIUMS

PLAN DOCUMENTS

CONTACT INFORMATION

FAQs

Life Insurance – Frequently Asked Questions

Q: Do you lock into the lower rate depending on your age or does it change on an annual basis?
A: Life insurance rates do increase with age, but not annually. Rates are fixed in 5 year age bands. (for example, the 40-44 age band has the same rate, the 45-49 age band has the same rate, etc). Rates are effective January 1 of each year based on your age as of December 31 of that year.

Q: Why is the life insurance for spouses capped at $40,000 – why not increase that coverage? (Today, the life insurance option is a choice of either $20,000 or $40,000 only).
A: The general maximum that states allow is up to the employee benefit. Not all employees would be able to purchase amounts of coverage for their spouse if it exceeds their life insurance. For example, if I made $20,000 yearly and my basic life is $40,000 (2x base salary), I could not purchase more than $40,000. The $40,000 limit on spousal assures we are meeting state legislature requirements.

Q: What is imputed income that appears on my paycheck?
A: Imputed income is the taxable value over $50,000 of group-term life insurance coverage provided by Caterpillar. The result is reported on your paycheck once per month as income and will also appear on your W-2.

NAMING A BENEFICIARY

Be sure to name your beneficiaries for life and AD&D insurance when you enroll in your benefits. You can make changes to your beneficiary elections at any time through MetLife at MetLife.com/mybenefits or by calling 1-888-228-1811.