Grossmont Union High School District

Life Insurance and AD&D

Life Insurance and AD&D

There’s no easy way to talk about death, but your family might need help if something happens to you. A life
and accidental death and dismemberment (AD&D) policy can provide that help. You are automatically signed
up for this benefit and your beneficiary will be paid a lump sum of money when you die. If your death was
caused by an accident, or if you lose a limb, you or the people you choose, called “beneficiaries,” may get
additional coverage.
Quick note on IRS Regulations: You can receive employer-paid life insurance coverage up to $50,000 on a tax-free basis and do not have to report the payment as income. However, coverage of more than $50,000 will trigger taxable income for the “economic value” of the coverage provided to you.