Supported in Maxwell: Term Life Insurance Structures

Maxwell Health supports many term life insurance plan structures. Learn about these structures below, along with some of the structures we don't currently support.

This article will review:


Supported Term Life Insurance Structures

Basic Life

Basic life insurance plans are ones in which the employee only has the option to either select the plan, or not select it. The employee cannot customize the plan in any way. We support most basic life plans with evidence of insurability (EOI).


Voluntary Life

With voluntary life insurance plans on Maxwell, the amount of insurance can be:

  • selected in increments (usually limited with a fixed maximum), including structures where:
    • the employee selects amounts in increments for themselves and their spouse and/or child. GI amounts for each role (employee, spouse or child) can trigger the need for EOI.
    • only the employee selects their amount in increments, and the spouse (and/or child) is eligible for a flat amount, or some percentage of what the employee chose
  • a multiple of the employee’s salary, or
  • a fixed amount of coverage (e.g. 60% of the employee’s salary)

Example $10,000 increments up to $500,000 with a guaranteed issue (GI) of $100,000 -or- Five times the employee’s salary up to $500,000 -or- 60% of the employee’s salary

Example For example, an employee can select a voluntary life plan where the maximum coverage amount is based on five times their salary at a rate of $.xx/1000 of coverage. On top of that, they can select coverage amounts in increments of $1,000 starting at $1,000 for all their dependents.

Voluntary Life and AD&D Several voluntary life and Accidental Death & Dismemberment (AD&D) structures are supported in Maxwell:

  • Ability to select a voluntary life plan that has a matching AD&D benefit
    • ExampleEmployee selects $100,000 of life insurance and $100,000 of AD&D insurance. The employee automatically gets the AD&D benefit, and does not have the option to add more coverage or not have AD&D.
  • Ability to select one coverage amount for voluntary life, and one coverage amount for AD&D per role
  • Offer different coverage amounts for life and AD&D
    • Example: Employee is eligible for five times their salary for voluntary life, but only two times their salary for AD&D
  • Ability to restrict who has access to the AD&D selection by role
    • Example: Employee and spouse can choose increments for voluntary life and AD&D, but child only has ability to enroll in life, not AD&D
  • If the employee can shop for AD&D without needing to enroll in voluntary life insurance, we can also set them up to be two completely different products. In this case, we can still link the products so that an employee who enrolls in voluntary life also enrolls in AD&D. Or so that an employee who selects the voluntary life product sees the AD&D product available for shopping.

Age Reduction

In Maxwell, life insurance plans can be configured so that they automatically begin to reduce an employee's and/or spouse’s benefit (by X%) when they hit a certain age. The reduced amount will show once they’re enrolled in the plan.

Notes on coverage amounts

  • Coverage amounts and maximum amounts for dependents can be based on a percentage of the employee’s election. For example, if the employee elects $100,000 of coverage, the spouse can elect up to 50% of that.
  • Minimum coverage amounts can be set as flat amounts (the same for all employees, spouses, children, etc.)
  • The maximum and the fixed coverage amount can be based on the employee’s salary, their selection, a fixed amount, or their salary plus a fixed amount.
  • We support increments that are:
    • $XXXX starting point and increasing $YYYY dollars until a maximum
    • Salary based increments (1x salary, 2x salary, etc.)
    • Predefined increments you can choose from


Unsupported Term Life Insurance Structures

There are some limitations to what we can implement for term life insurance products.

  • Combined basic and voluntary life insurance plans, including combined GI amounts and plan maximums

  • A separate GI amount for AD&D

  • Certain types of non-linear rates for life insurance plans

  • Coverage amounts based on age. This includes:
    • Child coverage amounts based on an age less than one year (e.g., a different coverage amount for when a child is between 15 days and 6 months).
      • For plans that offer a reduced coverage amount for children under a certain age, that reduced amount wouldn’t be reflected in the Maxwell platform at the time of the claim. This will be outlined in the plan details page when shopping for the plan.
    • Different minimum coverage amounts based on age for an employee or spouse/domestic partner. Only one minimum per role can be set on the plan and will apply to all ages.


Unsupported Life Insurance Structures

While we support many life insurance structures, there are a few that we’re still working on supporting, but cannot currently implement. We have listed the most common requests below.

  • Universal life insurance structures

  • Whole life insurance structures

  • Ability to round the coverage amount to the nearest xx dollar

  • Separate dollar rates per child (e.g., $2 per child) while rates for employee and spouse are based on coverage amount

  • Ability to support any voluntary life or AD&D elections in which the employee waives coverage for themselves, but elects coverage for their dependent (spouse or child)
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