Use the Coverage Options subtask to enter an unlimited number of coverage options for this benefit plan.
You can enter coverage and premium amounts either by specifying the rate or coverage table, or by entering the actual amount.
This subtask is an essential part of the Manage Benefit Plans screen. You must enter coverage options information before you can establish benefit packages or benefit package defaults. Entering information in this subtask is part of the first step in setting up any new benefit package.
Content
| Field | Description |
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| Benefit Plan
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This non-editable field displays the benefit plan code you entered on the main screen. The code's description is displayed in the field to the right of the code.
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Coverage Options
Use this group box to determine whether coverage amounts will be calculated using an amount, factor, or coverage table, and how the premium will be calculated if you are using an amount, factor, or coverage table.
| Field | Description |
|---|
| Coverage Calculation Method
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Use this drop-down list to determine the method by which coverage amounts are calculated.
- Amount: Select this option if you want the amount entered in the
Coverage Factor/Amount column to be used as the actual amount. When you select this option, the
Table group box and the
Coverage Table column is disabled. This is the system default.
- Factor: Select this option if you want the value entered in the
Coverage Factor/Amount column to be multiplied by the employee's salary to determine coverage. When you select this option, the
Table group box and the
Coverage Table column are disabled.
- Coverage Table: Select this option if you want to use the Coverage Amounts by Age or Coverage Amounts by Salary tables to calculate coverage. If you select this option, the
Table group box is enabled, and the
Coverage Factor/Amount column is disabled.
- None: Select this option if coverage amounts do not apply. This will be common for health insurance benefits.
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| Premium Calculation Method
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Use this drop-down list to determine whether premium amounts will be calculated using an amount, factor, or coverage table, and how the premium will be calculated if using an amount, factor, or coverage table.
- Amount: Select this option if you want the amount entered in the
Premium column to be used as the actual monthly amount. Selecting this button will disable the
Premium Table group box and enable the
Premium,
Company Amount, and
Employee Amount fields in the table.
- Cost Per $1,000: Select this option if you want the amount entered in the
Premium column to be used as the cost per $1,000 amount. Selecting this button disables the
Table group box and enables the
Premium,
Company Amount, and
Employee Amount fields in the table.
- Rate Table: Select this option to use the Premium Amounts by Age table or Premium Amounts by Salary table to calculate rates. Selecting this button enables the
Table group box and the Rate Table column. In addition, the
Premium,
Company Amount, and
Employee Amount fields in the table window are disabled.
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| Cash Out Pay Type
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Enter, or click
 to select, the code for the pay type to be used for the cash out option for this benefit plan, if a cash out option is available. If an employee elects a cash out option, this pay type is used to add the cash out amount to the employee's paycheck. This must be a
Benefit Reimbursement pay type, and it will be treated as fully taxable, unless otherwise indicated on the Configure Pay Type Taxability screen. This field is required if this benefit plan has a cash out option.
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| Coverage Table
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Use this drop-down list to indicate which table to use for calculating coverages. This group box will be enabled only if you selected the Coverage Table option in the
Coverage Calculation Method group box.
- Salary: Select this option to use the Coverage Amounts by Salary table for calculating coverage. You can then assign the applicable coverage table code to all coverage options.
- Age: Select this option to use the Coverage Amounts by Age table for calculating rates. You can then assign the applicable coverage table code to all coverage options.
- None: Select this option to use no coverage tables. The actual amount or a factor will be entered for each coverage option. This option is automatically set as the default if you select any option other than
Coverage Table in the
Coverage Calculation Method group box.
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| Premium Table
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Use this drop-down list to indicate which table to use for calculating rates. This group box is enabled only when you select the
Rate Table option in the
Premium Calculation Method group box.
- Salary: Select this option to use the Premium Amount by Salary table for calculating rates. You can then assign the applicable salary rate code to all coverage options.
- Age: Select this option to use the Premium Rates by Age table for calculating rates. You can then assign the applicable age rate code to all coverage options.
- None: If you select this option, no rate table is used. The actual amount will be entered for each coverage option. This is the system default.
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| Coverage Limit
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Enter the coverage limit for the plan. If the field is enabled, the application automatically sets the value in this field to 999,999,999,999,999.00.
This field is enabled if the
Coverage Calculation Method is
Factor or
Coverage Table;
Coverage Table is
Salary; and the
System Benefit Type is one of the following:
- Life Insurance
- AD&D Insurance
- Long Term Disability
- Short Term Disability
- Supplemental Life Insurance
- Supplemental AD&D Insurance
- Dependent Life Insurance
- Spouse Life Insurance
- Spouse AD&D Insurance
- Other
You can update the
Coverage Limit if needed.
This field is disabled if the
Coverage Calculation Method is
Amount or
Coverage Table and the
Coverage Table is
Age . When disabled, the value in this field is set to 999,999,999,999,999.00.
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Subtask
| Subtask
|
Description
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| Coverage Options Details
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Select this link to open the Coverage Options Details subtask for the current record.
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