I suspect most folks know that their group term life insurance plan isn't portable (meaning it generally stays behind when you leave), but some believe that their retiree-based coverage is sacrosanct.
As co-blogger Bob points out, maybe not:
"Workers who retired after years of folding shirts and selling refrigerators for Sears Holdings Corp. banded together earlier this year to complain when the retailer’s bankrupt shell terminated their life insurance plan."
Yikes.
Okay, bit what about those who've already shuffled off this mortal coil?
Well:
"Retirees who died after the plan was terminated but before the proposal is approved would receive an administrative claim of $5,000"
The bottom line is that most of these folks' beneficiaries will receive the princely sum of $135.
Exit question: Are these funds taxable?
As co-blogger Bob points out, maybe not:
"Workers who retired after years of folding shirts and selling refrigerators for Sears Holdings Corp. banded together earlier this year to complain when the retailer’s bankrupt shell terminated their life insurance plan."
Yikes.
Okay, bit what about those who've already shuffled off this mortal coil?
Well:
"Retirees who died after the plan was terminated but before the proposal is approved would receive an administrative claim of $5,000"
The bottom line is that most of these folks' beneficiaries will receive the princely sum of $135.
Exit question: Are these funds taxable?
from InsureBlog https://ift.tt/2YKyn0n
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