Life/AD&D Insurance

In the event real harm comes to you, you want your loved ones taken care of. That’s where life and accidental death and dismemberment (AD&D) insurance come in.

What it Covers
 Event  Netflix-Provided Benefit
Death (accident and non-accident) In the unfortunate event that a Netflix employee passes away, we are committed to providing their nominated beneficiary a $1 million payment.
Accident resulting in serious injury, but not death Up to two times your annual salary
(to a maximum of $400,000) plus any optional AD&D you purchased
The $1 Million Death Benefit Supplement
In the sad and unfortunate event that an employee passes away, Netflix provides a $1 million benefit to the employee’s beneficiary. We’re asked how this supplement came to be, and the answer is simple: When the need arose. After an employee working at Netflix passed suddenly, Netflix provided a $1 million benefit to the family to help lessen their worry. That decision has since become Netflix practice.


Basic Life and AD&D Insurance
In the unfortunate event that a Netflix employee passes away, we are committed to providing their nominated beneficiary a $1 million payment.  Netflix provides free basic life and AD&D insurance through Liberty Mutual, and Netflix would pay the difference. However, the Netflix payment is considered taxable income to the beneficiary.

A few examples:

Employee has an annual salary of $250,000 and passes away of a terminal illness:
The beneficiary would receive $1,000,000.
Liberty Mutual would pay $400,000
(maximum of $400,000 for basic life)
Netflix would pay the remaining $600,000
($1,000,000 - $400,000)
$600,000 would be considered taxable income for the beneficiary

Employee has an annual salary of $250,000 and passes away in a car accident:
The beneficiary would receive $1,000,000.
Liberty Mutual would pay $800,000
(maximum of $400,000 for basic life + maximum of $400,000 for basic AD&D).
Netflix would pay the remaining $200,000
($1,000,000 - $800,000)
$200,000 would be considered taxable income for the beneficiary

Optional Life and AD&D
Netflix offers optional life and AD&D insurance for employees. This would not increase the $1 million death benefit. Rather, this would help to supplement the taxable amount to the beneficiary.

A few examples:

Employee has an annual salary of $250,000 and passes away of a terminal illness.  Employee has $200,000 in optional life insurance:
The beneficiary would receive $1,000,000.
Liberty Mutual would pay $600,000
(basic life $400,000 + optional life $200,000)
Netflix would pay the remaining $400,000
($1,000,000 - $600,000)
$400,000 would be considered taxable income for the beneficiary

Employee has an annual salary of $250,000 and passes away in a car accident. Employee has $200,000 in optional AD&D insurance:
The beneficiary would receive $1,000,000.
Liberty Mutual would pay $1,000,000
(basic life $400,000 + basic AD&D $400,000 + optional AD&D $200,000)
There would be no supplemental, taxable payment from Netflix

Employee has an annual salary of $250,000 and passes away in a car accident. Employee has $200,000 in optional life insurance and $200,000 in optional AD&D insurance:
The beneficiary would receive $1,200,000.
Liberty Mutual would pay $1,200,000
(basic life $400,000 + basic AD&D $400,000 + optional life $200,000 + optional AD&D $200,000)
There would be no supplemental, taxable payment from Netflix

Optional Spouse/Partner and Child Life Insurance
Employees also have the option to buy Spouse/Partner Life Insurance and/or Child Life Insurance.  For this insurance, your children are defined as dependents up to age 26.


How it Works
Optional Life Insurance Automatically Approved - Guaranteed Issue (GI) Requires Evidence of Insurability Maximum You Can Purchase
Optional Employee Life Insurance
Up to $200,000 From $201,000 to $400,000
$400,000
Optional Employee AD&D Insurance
Up to $400,000
N/A
$400,000
Optional Spouse/Partner Life Insurance Up to $50,000 From $50,001 to $250,000 $250,000
Optional Child Life Insurance Up to $20,000    N/A $20,000


The Fine Print:
  • You pay taxes on the cost of benefits over $50,000. The IRS considers the cost of any benefit over $50,000 to be income. It’s called “imputed income” and will appear as a line item on your paycheck. 
  • Liberty Mutual requires you to provide evidence of insurability for coverage increases beyond a specific level. You need to provide evidence of insurability (EOI) if you are increasing coverage beyond:
    • $200,000 for optional employee life insurance
    • $50,000 for optional spouse/partner life insurance
  • After a qualifying life change (marriage, birth, or adoption of a child), you can increase your optional life and AD&D insurance. If you want to increase your benefit beyond an additional $25,000 for optional employee life and $10,000 in optional spouse/DP life, Liberty Mutual requires EOI. 
  • You will need to name a beneficiary or beneficiaries. A beneficiary is the person who receives the benefit. Be sure to name your beneficiary or beneficiaries when you first enroll. You can change your beneficiary at any time in Workday.
  • If you leave Netflix, you can convert your policies to individual ones. The necessary forms will be included in your exit package.