Group
Term Life Insurance is provided to full time Pastors assigned by the Conference Superintendent,
with premiums paid through the Program and Administration Fund (PAF).
Currently, our provider is Regence.
In addition to what the Conference provides, pastors may purchase additional
group term life insurance up to $300,000 for themselves. Additional coverage
may be purchased for spouses, but not at the group rate. The purchase
of additional insurance for the pastor and/or spouse will result in dependent
children being automatically covered at a portion of the parents' value.
Each Assigned Pastor is covered by a $50,000 Group Term Life Policy through Regence. Additional Insurance may be purchased for pastor and spouse — See VIP Plan below. Life Insurance will be extended in the case of Total Disability †
Accelerated Benefits are available in the case of Terminal Illness †
Policy can be converted to an Individual Policy without evidence of Insurability †
† in accordance with the terms of the group policy contract
VIP
Voluntary Life Insurance
Each Assigned Pastor may purchase additional coverage for themselves
or their spouse.
Must be purchased in blocks of $10,000. Purchase up to $100,000 before
needed proof of insurability. Purchase up to $300,000 with proof of
insurability. This is a taxable benefit — the first $50,000 provided
is not taxable (see below). Spouses do not qualify for Group Rates.
Purchase on the VIP results in automatic coverage for dependent children
(see below). contact us for an application and additional information.
Dependent Children's Coverage
Birth to 6 months — $1,000 or 5% of the insured's face amount,
whichever is less
6 months to 23 years — 5% of the insured's face amount
Call for rates
Imputed
Income for Group Life Insurance
Your voluntary portion of life insurance will increase your tax liability!
The Table 1 below is a mechanism set up by the IRS to tax individuals
on their volume of life insurance over $50,000. The volume includes
the basic life amount provided ($50,000) as well as any VIP voluntary
life insurance paid for by the pastor. For instance, since the conference
is providing $50,000, if in individual purchased and additional $30,000,
the total volume is $80,000 and the volume over $50,000 used in the
Table 1 calculation is $30,000.
The Table 1 rates are not in any way related to the current life insurance
rates charged by the insurance company. They are set up by the IRS.
The volume of life insurance over $50,000 is multiplied by the applicable
Table 1 rate (age rated) for each month the life volume is over $50,000,
and the result of that calculation is the taxable income that needs
to be included on the pastor's W-2.
If the pastor is paying for any part of the life insurance (including
their voluntary life insurance, if any), their total contribution is
deducted form the amount owed according to the Table 1 calculation.
If the conference contribution is more than the table calculation, there
is no taxable income and nothing needs to be reported on the W-2. If
the pastor's contribution is less than the Table 1 calculation, the
difference is the taxable income and should be reported on the W-2.
The table below represents the Table 1 rates as set by the IRS
5-year Age Bracket Rates effective 7/1/99 per $1,000 of Coverage
Under 25 -- $ .05
25 - 29 -- $ .06
30 - 34 -- $ .08
35 - 39 -- $ .09
40 - 44 -- $ .10
45 - 49 -- $ .15
50 - 54 -- $ .23
55 - 59 -- $ .43
60 - 64 -- $ .66
65 - 69 -- $ 1.27
70 and over -- $ 2.06