When are life insurance benefits paid?
Life insurance benefits are paid to your beneficiary if you die while coverage is in effect.  Some plans do not provide benefits if you die from certain causes, such as war or injury while you are committing a felony.

When are accidental death and dismemberment (AD&D) insurance benefits paid (AD&D benefits are not available to retirees)? 
Accidental Death and Dismemberment (AD&D) benefits are paid to your beneficiary if you die as the direct result of a covered accident that occurs while coverage is in effect.  AD&D insurance benefits are paid to you if you suffer certain severe injuries as the result of a covered accident that occurs while coverage is in effect.  Such benefits are often expressed as a percentage of the total death benefit payable.  If you suffer several covered injuries as a direct result of the same accident, the plan will typically pay 100% of the total death benefit payable, but no more. 

How do I name or change my beneficiary? 
For many people, the largest inheritance they leave is the life insurance through their employers.  It is important to name a beneficiary(ies) to receive this insurance if you die, and to keep this designation up to date.  If you name multiple beneficiaries, be sure to indicate the percentage or fraction of benefits payable to each, or indicate that the benefit is to be paid equally among survivors. To name your beneficiary(ies), you will need to complete and sign a beneficiary form (form MUST be returned to the Benefits Department in order to be valid).  You may wish to consult an attorney before you name your beneficiaries, especially if you are naming dependent children or a trust.

It is a good idea to name a primary beneficiary(ies) to receive benefits if you die, as well as a secondary beneficiary(ies) to receive benefits if your primary beneficiary(ies) are not alive to receive your benefits. You can generally change your designation at any time.

What is a primary beneficiary(ies)? 
A primary beneficiary(ies) receives benefits from your life insurance if you die before the primary beneficiary(ies).  If all primary beneficiaries die before you do, benefits are paid your secondary beneficiary(ies).

What is a secondary beneficiary(ies)?
A secondary beneficiary(ies) receives benefits from your life insurance if all primary beneficiaries die before you do. 

What happens if there is no beneficiary?
If you don't name a beneficiary, or if no named beneficiaries survive you, your death benefits will be paid under the rules of your plan and applicable regulations.

Is it true that I can be taxed on life insurance protection?
Yes. The IRS requires your employer to report the value of any company paid basic life insurance coverage over $50,000 on your W-2.  This is not the same as being taxed on the amount of coverage.  This "imputed" income is not subject to federal income tax withholding, but is subject to FICA tax withholding.

You are not taxed on the actual amount of your company paid coverage.  Instead, your employer reports the amount the IRS considers an appropriate premium for the portion of your company paid basic life insurance over $50,000.  The IRS publishes these rates in tables based on your age.