By Mike Gibbons, RICP®
Life insurance protects your dependents in the event of your death, so it’s crucial to carry life insurance if you have children or others who rely on you financially. Additionally, it’s wise to make a habit of updating your coverage at least once per year as your life situation and needs change. Taking advantage of the Abbott Laboratories/AbbVie life insurance offering is a no-brainer for most Abbott Laboratories/AbbVie employees, but you have to go a step further to make sure you have enough total coverage. That’s why we put together this overview of the types of coverage available for Abbott Laboratories/AbbVie employees.
Life Insurance
Abbott offers both basic and supplemental life insurance options. No matter which options you choose, you will be required to name a primary and contingent beneficiary upon enrollment.
Basic Coverage
Basic coverage becomes available to Abbott employees on their first day of work as a regular employee. This plan automatically provides one times your base pay at no cost to you as an employee. You also do not have to provide evidence of insurability as long as you enroll within 31 days of becoming eligible and do not exceed certain coverage limits.
Keep in mind that a portion of this coverage could be considered taxable income under federal income tax regulations. The amount of coverage will determine if you are subject to this rule. If you are affected by this tax provision, the additional taxable income will be shown on your paystub as well as your end-of-year W-2 statement.
Supplemental Coverage
Any employee who is eligible for basic life insurance is also eligible to elect supplemental coverage. Abbott offers seven supplemental insurance options to choose from, but elections greater than 500% of base annual earnings will be subject to evidence of insurability.
Supplemental coverage does require a premium payment. Your premium will be based on the coverage level you choose as well as your age as of January 1 and whether you are a non-smoker.
Other Insurances Available
Abbott also offers several other types of insurance that employees can use to provide comprehensive protection for their loved ones.
Accidental Death & Dismemberment Insurance
This insurance provides benefits to either you or your beneficiary if you were to lose a limb or die due to certain covered accidents. The basic coverage level is $10,000 provided at no extra cost. Employees can choose to supplement this coverage up to the lesser of 10 times their base earnings, or $500,000 for an additional premium payment. You may also elect to cover your spouse up to $100,000.
Business Travel Accident Insurance
All Abbott employees are automatically covered under the business travel accident insurance when traveling for Abbott business. Spouses and children of employees are also automatically covered when traveling with an Abbott employee for company business or relocation. Coverage is provided at no extra cost at five times your base earnings for a maximum of $1,000,000 of coverage.
Life Insurance on Dependents
If you are eligible for the Abbott Life Insurance Plan, then you can elect to add life insurance coverage on qualified dependents including your spouse or domestic partner, and dependent children (including children of a domestic partner) under age 26. The maximum amount of coverage you can elect for a spouse or domestic partner is $100,000 and dependent child coverage maxes out at $25,000. Premium payments depend on the coverage level you select.
Do You Have Questions About Your Abbott Life Insurance?
Are you an Abbott employee with questions about your life insurance coverage? Gibbons Financial Group can help you assess your coverage options and choose the best plan for your needs. Call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.