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.)

Benefit amount

Benefits are paid if you die as an employee or retiree eligible for coverage. 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 is 200% of your annualized monthly benefit pay as an employee.

The Benefit amount for retirees after January 1, 2000, and on or before December 1, 2015, is shown below:

Attained Age	Years of Service	% of Annualized Monthly Benefit Pay
Less than 65	15 or more	150%
65	Any	149%
66	Any	137%
67	Any	125%
68	Any	113%
69	Any	101%
70	Any	89%
71	Any	77%
72	Any	65%
73 and 3 months	Any	50%

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.

The Benefit amount for all other retirees eligible for coverage is 150% of annualized monthly benefit pay for five years after retirement. An eligible retiree was an employee participating in the plan as of December 1, 2015, who was at least 50 years of age with at least 10 years of benefit service, and becomes a retiree after December 1, 2015.

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 the ExxonMobil Benefits Service Center.

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 the ExxonMobil Benefits Service Center receives notification that Cigna* has approved the evidence of insurability.

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

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:

5-Year Age Bracket	Monthly Rates
Under 25	$ 0.05
25 to 29	.06
30 to 34	.08
35 to 39	.09
40 to 44	.10
45 to 49	.15
50 to 54	.23
55 to 59	.43
60 to 64	.66
65 to 69	1.27
70 and above	2.06

Annual imputed income

This table shows sample imputed income amounts for ages 40 and higher based on $120,000 insurance, less the $50,000 exclusion.

5-Year Age Bracket	Annual Imputed Income
Under 25	$ 42
25 to 29	$ 50
30 to 34	$ 67
35 to 39	$ 76
40 to 44	$ 84
45 to 49	$ 126
50 to 54	$ 193
55 to 59	$ 336
60 to 64	$ 554
65 to 69	$ 1,067
70 and above	$ 1,730

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 eligible for coverage, 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.

If you become a retiree eligible for coverage after December 1, 2015, your Basic Life coverage ends 5 years from your retirement date.

Coverage during approved leaves of absence

• Health/Dependent Care Leave - up to 6 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.

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 CGLIC within 31 days of the date your coverage ends (see Information sources). Evidence of insurability is not needed. You cannot convert the uninsured death benefit.