BECAUSE KEEPING PROMISES REQUIRES PLANNING

Transcription

1 BECAUSE KEEPING PROMISES REQUIRES PLANNING Voluntary Group Term Life Insurance Issued by The Prudential Insurance Company of America (Prudential)

2 American Foreign Service Protective Association VOLUNTARY GROUP TERM LIFE INSURANCE PLAN As an active Principal Member in good standing of the Protective Association, you and your family are eligible to enroll for the Voluntary Group Term Life plan issued by The Prudential Insurance Company of America (Prudential). This brochure explains eligibility, available coverages, and how to enroll. ELIGIBILITY Who is eligible? All active Principal Members under age 60 who are in good standing with the Protective Association are eligible for coverage, as well as their qualified dependents. Who are my qualified dependents? Qualified dependents include your: 1. Spouse. 2. Unmarried children from live birth* to age Legally adopted children. A child placed with you for adoption prior to legal adoption is considered your qualified dependent from the date of placement for adoption, and is treated as though the child were a newborn child to you. 4. Stepchildren and foster children who are dependent on you for support. 5. Grandchildren who are wholly dependent on you and are claimed on your federal tax return as dependents. Dependents can enroll for coverage without Principal Member election at age 19. Note: We encourage qualified dependents to have coverage in their own name. No eligible person may be covered by more than one policy. If he/she has coverage in his/her own name, he/she cannot be covered as a dependent under another member s policy. AVAILABLE COVERAGES What coverages are available to me and my family? Voluntary Group Term Life for you: Life insurance may be one of the best ways you can help protect your loved ones in the event something happens to you. Get up to $600,000 in Voluntary Group Term Life Insurance for yourself. As an Association Member, you can apply for Voluntary Group Term Life Insurance coverage issued by Prudential from $20,000 to $600,000, in increments of $10,000. What are the Voluntary Group Term Life benefit reductions? When you reach age 60, coverage is reduced by 30% of the original coverage amount; at age 65, it is reduced by another 20%; and at age 80, coverage is terminated. Do I need to submit evidence of insurability to enroll for or increase my Voluntary Group Term Life coverage? New hire members are Guaranteed Issue up to $200,000 of Voluntary Group Term Life insurance. Eligible members must apply for this coverage within 60 days of hire. If an application is received after 60 days of hire, and/or coverage over $200,000 is requested, completion of a health questionnaire will be required satisfactory to Prudential. What additional features are included in the Voluntary Group Term Life plan? Accelerated Benefit Option 1 : The Accelerated Benefit Option allows, in certain cases, early access to a portion of your life insurance benefits that would eventually be paid at death. This is a compassionate and flexible addition to your life insurance coverage. You can use the benefit in any way you wish to pay medical bills, hire home health aides, prepay funeral expenses, or even travel. If you are diagnosed with a terminal illness and have a life expectancy of nine months or less, this benefit will pay 50% of your coverage amount up to $50,000. Guaranteed Conversion: When a member is no longer eligible for coverage due to the limiting age, he or she may convert the coverage, without medical examination, to an individual policy issued by Prudential. * There is a limited benefit of $500 for children from live birth to 2 weeks of age.

3 Can my Voluntary Group Term Life coverage be cancelled? While the Master Group Policy remains in force, and as long as you pay your premiums, your coverage cannot be canceled until you reach age 80. Are there Voluntary Group Term Life exclusions? No, benefits are payable for death from any cause including acts of terrorism or war (declared or undeclared). How much does Voluntary Group Term Life Insurance cost? Annual rates per $1,000 of coverage: Member Coverage Schedule of Premiums (Member coverage terminates at age 80.) Age Rate Under 25 $ $ $ $ $ $ $ $ $ $ $ $89.53 Your premium will increase as you age, as indicated in the chart on the left. Please refer to the chart to determine your present and future premiums. Voluntary Group Dependent Term Life for your spouse and children: Available coverage for your spouse ranges from $15,000 to $5,000, dependent upon your age. Available coverage for your children ranges from $3,000 to $1,000, dependent upon your age and the age of your child(ren).* Below are the available coverage options and premiums for your spouse and children. Premiums will increase as you age, as indicated in the chart. Please refer to the chart below to determine present and future premiums. Family/Dependent Coverage Schedule of Premiums (Coverage terminates for spouse and child when member reaches age 80.) Member s Age Spouse Coverage Children 2wks*-2yrs Children 2-5 yrs Children 5-26 yrs Annual Premium Under 25 $15,000 $3,000 $6,000 $7,500 $ $15,000 $3,000 $6,000 $7,500 $ $15,000 $3,000 $6,000 $7,500 $ $15,000 $3,000 $6,000 $7,500 $ $11,250 $2,500 $4,500 $5,625 $ $11,250 $2,500 $4,500 $5,625 $ $7,500 $1,500 $3,000 $3,750 $ $7,500 $1,500 $3,000 $3,750 $ $6,250 $1,250 $2,500 $3,125 $ $5,000 $1,000 $2,000 $2,500 $ $4,000 $1,000 $2,000 $2,500 $ $2,500 $1,000 $2,000 $2,500 $120 * There is a limited benefit of $500 for children from live birth to 2 weeks of age.

4 Questions? Contact American Foreign Service Protective Association: Call: Web site:

5 1 Accelerated Death Benefit option is a feature that is made available to group life insurance participants. It is not a health, nursing home, or long-term care insurance benefit and is not designed to eliminate the need for those types of insurance coverage. The death benefit is reduced by the amount of the accelerated death benefit paid. There is no administrative fee to accelerate benefits. Receipt of accelerated death benefits may affect eligibility for public assistance and may be taxable. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefits and is considered terminally ill. You may wish to seek professional tax advice before exercising this option. This is not the insurance contract. This brochure provides a brief description of the important provisions of the Master Policy issued to the American Foreign Service Protective Association. Policy provisions will prevail if there are any conflicts between them and this description. Voluntary Group Term Life and Voluntary Group Dependent Term Life Insurance coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ. The Booklet-Certificate contains all details, including any policy exclusions, limitations, and restrictions, which may apply. Contract Series: Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide