Family adjustment and family income coverage

Family adjustment and family income coverage information for Family Adjustment, Family Income and Contributory Group Life Insurance Plans

Family Adjustment Coverage

If you die as an employee or retiree before age 65, your Family Adjustment Coverage equals one year of your final annualized ExxonMobil monthly benefit pay. The benefit declines by 0.5 percent per month starting the first of the month in which you reach age 65 and continues to reduce until it reaches 50% at age 73 and 3 months.

If you terminate without retiree status due to disability, you retain this coverage for up to one year if you remain disabled.

Form of payment

Family Adjustment Coverage ordinarily pays the benefit in a lump sum.

Whom paid

Your beneficiary may be anyone you choose.

Family Income Coverage

Family Income Coverage provides monthly income for certain eligible surviving family members when you die.

To whom paid

Most often, the benefit, an amount equal to 20 percent of your final ExxonMobil monthly benefit pay, is paid monthly to a surviving spouse. Unlike Family Adjustment Coverage, which permits you to name a beneficiary, benefits under Family Income Coverage are paid to surviving relatives according to a fixed schedule. If you have no eligible surviving relatives, benefits are not paid.  The plan divides eligible survivors into two categories: preference relatives and dependent, non-preference relatives.

Preference relatives

  • A preference spouse is someone to whom you have been married at least one year and who meets either of these two conditions:
  • lives with you when you die, or
  • lives apart from you when you die but receives support from you equal to 20 percent of your final annualized ExxonMobil monthly benefit pay or in the case of a retiree, receives support equal to 20% of

your prior year adjusted gross income for the 12 months prior to your death.

An additional requirement applies to the spouse of a retiree (see Coverage after retirement with retiree status).

Preference children are children under age 21 or who have become incapable of self-support prior to age 21: and who either:

  • live with you when you die, or
  • live apart from you but receive support from you equal to 20 percent (10 percent if only one child) of your final annualized ExxonMobil monthly benefit pay, or in the case of a retiree, receives support equal to 20% of your prior year adjusted gross income for the 12 months prior to your death.
  • A preference parent is one who receives support from you equal to 10 percent of your final annualized ExxonMobil monthly benefit pay, or in the case of a retiree, receives support equal to 20% of your prior year adjusted gross income for the 12 months prior to your death.

Dependent, non-preference relatives

If a spouse, child under age 21 or parent does not qualify as a preference relative, he or she may be included in the dependent, non-preference class. Dependent, non-preference relatives include any eligible relative by blood or marriage who received support from you of at least 10 percent of your final annualized ExxonMobil monthly benefit pay or the U.S. Federal Estate Tax Annual Gift Exclusion ($14,000 in 2014) for the tax year immediately preceding the year of your death, whichever is less.

“Eligible” means living, and a spouse who has not remarried, or a parent, or in the case of any other preference relative or non-preference relative, has not reached ineligible status upon attaining age 21, unless the person becomes permanently incapable of self-support prior to attaining age 21, and remains so at the time of your death.

Payment priorities

The plan considers surviving preference relatives in this order:

  • If you have an eligible preference spouse, he or she receives the benefit.
  • If there is no eligible preference spouse, the benefit is paid to eligible preference children.
  • If there are no eligible preference children, the benefit is paid to eligible preference parents.
  • If there are no preference relatives at the time of your death, the plan considers dependent, non-preference relatives. First priority is paid to a dependent, non-preference spouse. If there is none, benefits are divided equally among all other dependent, non-preference relatives.

A special rule for remarriage

If a preference spouse remarries, remaining benefits are transferred to the next preference relative eligible to receive them. If there are none, the remarried spouse receives a one-time payment of 12 times the amount of the monthly benefit he or she was receiving before remarrying.

When payments begin and how long they continue

If you die as an employee, benefits start in the month following your death. (See Coverage after retirement with retiree status for special rules for retirees). Once payments begin, the maximum period over which they can continue depends on who the benefit is payable to.

The following charts summarize the factors that determine the amount of the benefit and how long it will be paid.  If you have no survivors eligible under this plan, benefits are not paid.