Can Participant Waive Life Insurance?

[Dennis Povloski]

Takeover Defined Benefit Plan defines the death benefit as the face amount of insurance provided by premium equal to 66 2/3% of the Theoretical Individual Level Premium Cost.

I noticed in reviewing the prior actuary's val, that they sent the owner and his wife waivers to sign saying they would waive any death benefit provided by insurance in excess of the amount provided by the policies that have already been purchased.

Can a participant waive the purchase of additional life insurance if the plan says the death benefit will be provided by life insurance? Don't they need to amend the plan's death benefit instead??

Thanks!

[SoCalActuary]

Having the amendment is nice, but their acceptance of a lower benefit is not a problem for the IRS. Lower HCE benefits are not a discrimination issue.

[david rigby]

Is the trust the beneficiary of the policy? Does the plan define the death benefit in relation to the policy or to some other formula?