Coverage amounts

A coverage amount is a flat or calculated amount of coverage. Here are the examples:

• A life insurance plan offers coverage as a multiple of employee salary, a flat amount, or supplemental.

• A disability plan offers coverage as a percent of an employee's salary.

In a benefit plan, you can define unique coverage amounts for different groups of employees. For example, the plan could offer union employees life coverage as one, two, or three times their salary, while non-union employees can select between one to five times their salary in coverage.