Life & Disability

Organon pays for basic life insurance coverage from New York Life at 1x base pay, up to a maximum of $1 million.* Organon also provides BTA insurance of 4x base pay, administered by Zurich.

* Imputed income on basic life insurance
The IRS requires you to be taxed on the value of employer-provided group term life insurance over $50,000. The taxable value of your basic life insurance coverage is called “imputed income.” Even though you don’t receive cash, you are taxed as if you received cash in an amount equal to the value of this coverage over $50,000.

You may choose to protect yourself and your family with additional employee-paid life insurance from New York Life. Rates depend on your age, salary, and your smoker/non-smoker status. Rates will increase every five years as you reach certain age bands (30, 35, 40, 45, etc.). Costs also can increase during the year if you have a salary change.

You may purchase life insurance for:

• You (1x to 8x base pay up to a maximum of $2 million, combined with basic life insurance)*
• Your spouse/domestic partner (increments of $10,000, $25,000, $50,000 or $100,000)
• Child(ren) ($10,000 per child)

You also may purchase Accidental Death & Dismemberment (AD&D) Insurance of 1x to 8x base pay, up to $1 million. AD&D Insurance protects you and your family if you sustain certain serious injuries as a result of an accident or in the event of your accidental death.

If you are electing voluntary coverage for the first time, or are increasing your coverage, you will need to provide Evidence of Insurability (EOI),  proof of good health.

*If the value of the combined benefit exceeds $2 million, your voluntary life benefit will decrease.

Organon provides STD coverage at no cost to you. However, you may be required to pay for STD coverage in states with mandated STD coverage. STD covers eligible founders who are unable to work due to an illness, injury or medical condition.

• For the first 10 weeks of an approved STD leave, payments equal 100% of your base pay (excluding commissions, overtime, bonuses or any special or supplemental pay).
• For weeks 11 through 26, the STD payments equal 70% of your base pay.

If you are disabled beyond 26 weeks, LTD coverage may pay benefits after your Organon STD benefits end. However, you must be certified as disabled by the claims administrator to qualify for LTD benefits. Organon pays the full cost of basic LTD, which provides 60% of base pay. You can choose to receive this benefit with before-tax or after-tax dollars.

You have the option of choosing a higher level of LTD coverage by choosing coverage of 70% paid with after-tax dollars. In this case, you will have the 60% company-provided coverage on an after-tax basis. You cannot elect to have the employer-paid 60% benefit provided on a before-tax basis if you purchase the 70% LTD coverage option.

Your basic and voluntary LTD options are:

• 60% of base pay before-tax, company-paid (smallest benefit; pay later, tax-free now)
• 60% of base pay after-tax, company-paid (larger benefit than 60% of base pay before-tax option; pay now, tax-free later)
• 70% of base pay after-tax, employee-paid (larger benefit than 60% of base pay after-tax option; pay now, tax-free later)