If your company has benefit plans for which coverage amounts differ by age group, you can use this screen to set up codes, related descriptions, and other information that will be used in determining coverage by age ranges. These rates are generally used only for life insurance plans.
Use this screen to set up coverage amounts for employee age ranges. You can apply this information to a benefit plan by entering the coverage table code in the Coverage Table column in the Coverage Options subtask of the Manage Benefit Plans screen under the following conditions:
You selected the Coverage Table option in the Coverage Calculation Method group box in the Coverage Options subtask of the Manage Benefit Plans screen.
You selected the Age option in the Coverage Table group box in the Coverage Options subtask of the Manage Benefit Plans screen.
Enter the coverage amounts by age information before setting up a benefit plan that will be using this table. However, you can add to this table at any time, and you can establish an unlimited number of records.
Enter a unique code to identify this coverage table.
Enter a description or name for the coverage table.
After you click the New Record button on the toolbar, enter up to three digits that identify the age (in whole number years) at which to start the range. In the first row, this field must be 0. Subsequent rows must equal the previous row's To Age + one year. For example, for the age range 0 - 19, you enter 0 in this field on the first row. On the second row, this field will be 20. This is a required field.
Enter up to three digits to identify the age (in whole number years) at which the range ends. This value must be equal to or greater than the value in the From Age field. For example, for the age range 0 - 19, you enter 19 in this field on the first row. This is a required field.
From the drop-down list, select the calculation method option. Valid options are:
Factor
Amount
If you select Factor in this field, the system calculates the coverage by multiplying the employee's salary by the factor that you enter in the Coverage column. Select Amount if you want the amount that is entered in the Coverage column to be the actual coverage amount.
Enter the amount of coverage for an employee in this age bracket. You can enter an amount as large as $999,999,999.99. However, if this value represents a factor, it cannot exceed 100.00. This is a required field.
Enter the coverage limit amount for an employee in this age bracket. You can enter an amount as large as $999,999,999.99. You can edit this field only if the Calculation Method is Factor. If the Calculation Method is Amount, this field defaults to $999,999,999.99 and becomes disabled.
If your company offers life insurance at different coverage amounts based on the ages of the employees, you could set up a table similar to the one below:
|
Age Ranges |
Calculation Method |
Coverage |
Coverage Limit |
|
0 - 19 |
Factor |
5 |
400,000.00 |
|
20 - 29 |
Factor |
4 |
400,000.00 |
|
30 - 39 |
Factor |
3 |
400,000.00 |
|
40 - 49 |
Factor |
2 |
400,000.00 |
|
50 - 99 |
Factor |
1 |
400,000.00 |
According to this table, employees through the age of 19 receive five times their annual salary in life insurance coverage. Employees from age 20 through age 29 receive four times their annual salary in life insurance coverage, and so on. The age of an employee is determined by the option you selected in the Age Calculation Method group box in the Coverage Options subtask of the Manage Benefit Plans screen. A coverage limit of $400,000.00 is applied to all age brackets.