GVUL Differences

Group Term

GVUL

Benefit Coverage Amounts in Excess of $50,000:

Typically, $1,068,000 for 2024 (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)