GVUL Differences

 

Group Term

GVUL

Benefit Coverage Amounts in Excess of $50,000:

Typically, $1,090,000 for 2025 (2500 x 12 year hourly captain rate)

Same

Taxation:

Taxed on an amount equal to the cost of group-term life insurance coverage based on IRS Table I rates to the extent the coverage exceeds $50,000.

Taxed on actual Delta premiums, resulting in much lower taxable income vs group term for all ages and coverage amounts based on current GVUL rates. 

Portability:

Not Portable

GVUL coverage is fully portable at the applicable retiree/terminated pilot rates

Delta-Provided Retiree Life Benefit:

Access to Delta provided retiree life benefit applies

Access to Delta provided retiree life benefit unimpacted by choice of GVUL

Investment Options:

N/A

Ability to invest in an interest-bearing account and 20 variable funds

Federal Income Tax Free Death Benefit:

Face amount only

Face amount + any accumulated cash value

Investment/Tax Advantages:

  • Cannot contribute additional dollars
  • No cash value and therefore, tax-deferred growth or tax free withdrawals of cash value doesn’t apply

Delta's premium counts towards pilot's cost basis (more details to follow in upcoming education webinar and pilot meetings)

Based on the current rates and assumptions below, the amount of taxable income is less under GVUL as illustrated in the Taxable Income Difference column in the chart below. See Sample for more information.

Issue Age

Company
Provided Coverage
above$50,000
Group Term

 

Group Term
Estimated Taxable
Income

 

GVUL
Estimated Taxable Income

 

Taxable Income Difference

30-34

$1,068,000

$1,025.28

$346.08

-$679.20

35-39

$1,068,000

$1,153.44

$346.08

-$807.36

40-44

$1,068,000

$1,281.60

$512.64

-$768.96

45-49

$1,068,000

$1,922.40

$833.04

-$1,089.36

50-54

$1,068,000

$2,947.68

$1,461.12

-$1,486.56

55-59

$1,068,000

$5,510.88

$1,909.68

-$3,601.20

60-64

$1,068,000

$8,458.56

$3,139.92

-$5,318.68

Sample:
Issue Age as of January 1, 2024 = 46
Basic Coverage Amount = $1,068,000
Income = $181,000

Group Term Life Insurance
Estimated Taxable Income = $1,922.40
Adjusted Income = $182,922.40

GVUL
Estimated Taxable Income = $833.04
Adjusted Income = $181,833.04