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 Benefit Plan Setup screen under the following conditions:
You selected the Coverage Table radio button in the Coverage Calculation Method group box in the Coverage Options subtaskof the Benefit Plan Setup screen;
You selected the Age radio button in the Coverage Table group box in the Coverage Options subtask of the Benefit Plan Setup screen.
You should 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 up to 12 alphanumeric characters to uniquely identify this coverage table in this required field.
Enter up to 30 alphanumeric characters to describe or name this coverage table. This field is required.
After selecting New Line 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 Up To & Incl Age + one year. For example, for the age range 0 - 19, you will 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 will enter "19" in this field on the first row. This is a required field.
If you enter "F" (Factor) in this field, the system will calculate the coverage by multiplying the employee's salary by the factor that you enter in the Coverage column. Enter "A" (Amount) if you want the amount that is entered in the Coverage column to be the actual coverage amount. This is a required field.
Enter up to 12 digits, plus up to two digits to the right of the decimal, for 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 "F" (Factor). If the Calculation Method is "A" (Amount), this field will default to $999,999,999.99 and become 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 radio button you selected in the Age Calculation Method group box in the Coverage Detail subtask of the Benefit Plan Setup screen. A coverage limit of $400,000.00 is applied to all age brackets.
Changes to this screen update the following tables:
Age Coverage - HB_AGE_CVG
Age Coverage Schedule - HB_AGE_CVG_SCH
Benefit Plan - HB_BEN_PLAN_HDR
- HB_BEN_PLAN_LN