Index

About Life Insurance

Eligibility and Enrollment

Basic Accidental Death and Dismemberment Insurance

Group Universal Life Insurance

Voluntary Accidental Death and Dismemberment Insurance

Choosing a Beneficiary

Retiree Coverage

Administrative and ERISA Information

Key Terms

Basic Life Coverage

Q. What benefit does the company provide?

A. The company pays the full cost of your Basic Life coverage. The maximum benefit is two times your annualized monthly benefit pay. If you die as the result of an accident, additional benefits may be paid. (See Basic Accidental Death and Dismemberment Insurance on page 9.)

Benefit Amount

Benefits are paid if you die as an employee or retiree. As an employee, if you have a pay change your coverage is based on your annualized monthly benefit pay beginning the first full month after the change, rather than effective with the pay change. The benefit amount — based on your annualized monthly benefit pay — is shown below:

Note: Beginning at age 65, the benefit reduces monthly on a pro-rata basis. Employees with less than 15 years of benefit service, but who separated with retiree status, have 150% of annualized monthly benefit pay at age 55.

You will be covered under life insurance unless you specifically elect death benefit coverage.

Life Insurance Compared with Death Benefit

You may choose to have Basic Life coverage in the form of an insurance benefit or an uninsured death benefit. The benefit amount is exactly the same. The difference between the two types of benefits is their treatment under state inheritance federal estate, and income tax laws.

You may change from life insurance to an uninsured death benefit at any time, and the change is effective the first of the month following the date your properly completed election form is received by Benefits Administration.

To change from the death benefit to the life insurance option, you must provide evidence of insurability and meet CIGNA's underwriting requirements. Your change will become effective the first of the month following the date Benefits Administration receives notification that CIGNA has approved the evidence of insurability.

Tax Considerations

Life insurance proceeds paid to your beneficiary are not subject to federal and local income tax. Life insurance proceeds may, however, be subject to federal estate taxes.

While you are alive, you are taxed on the "value" of any company-provided life insurance coverage over $50,000. The "value" is determined by your age and a schedule established by the Internal Revenue Service (IRS). This tax liability is based on an "imputed income" calculation. This imputed income is included in your gross wages and on Form W-2 at the end of the calendar year.

The following table shows the imputed income amount for each $1,000 of company provided Basic Life Insurance:

Annual Imputed Income

This chart shows sample imputed income amounts based on $120,000 insurance, less the $50,000 exclusion.

Example: A 50 year-old with $120,000 of life insurance has an annual imputed income of $193 and must pay income taxes on that amount.

Uninsured Death Benefit

If you choose the uninsured death benefit option, the company pays your beneficiary the same amount the insurance coverage would have paid. Because there is no insurance under this option, there is no imputed income for federal income tax purposes. However, the proceeds paid to your beneficiary are subject to income tax and may also be subject to taxes as part of your estate.

How the Benefit is Paid

The uninsured death benefit is payable as a lump sum to your beneficiary. Life insurance proceeds are deposited in an interest bearing account with the insurance company and the beneficiary has the right to withdraw the proceeds as needed. In addition, the insurance company offers other settlement options such as an annuity.

When Coverage Ends

If you leave employment without becoming a retiree, your Basic Life coverage ends:

• Thirty-one days after termination if you have the life insurance.
• Immediately if you elected the uninsured death benefit option.
• If you become a suspended retiree.

If you are terminated due to disability, coverage is extended up to one year so long as you continue to receive disability benefits under the ExxonMobil Disability Plan.

If your employment status changes from regular to non-regular employee, you are treated as if you had terminated employment without becoming a retiree. Non-regular employees included extended part-time (enhanced non-regular) employees.

Coverage during approved Leaves of Absence

• Health/Dependent Care Leave - up to six months.
• Military Leave - continues for the length of the leave.
• Personal Leave: up to 12 months. However, when a Personal leave is used to extend a Health Dependent Care leave, the maximum benefit coverage is 12 months for the combined leaves.
• Education Leave: up to 6 months.
• Civic Affairs Leave: up to 30 days.

Conversion Option

If you have the life insurance option, you may be able to convert some of your coverage to an individual converted life policy. You must apply in writing and pay the premium to LINA within 31 days of the date your coverage ends (see page 1). Evidence of insurability is not needed. You cannot convert the uninsured death benefit.