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Prudential Optional Life
Insurance Benefit
Life
is full of pleasant surprises and, at the same time life holds many
uncertainties It's easier to plan for events you know will occur, such as
buying a home, planning for a wedding or saving for college tuition costs.
It’s more difficult to plan for the unexpected. For these times, it’s
important that you have enough life insurance coverage. Your current life
insurance plans may not offer enough insurance protection. Together with
your employer, Prudential offers you the opportunity to purchase term life
insurance which can help further safeguard your earnings and helps cover
your financial obligations in the event of your death.
You
can receive many benefits by participating in
Prudential’s voluntary Optional Term Life plan.
-
Choice
of Coverage -
Prudential’s Optional Term Life plan offers you the opportunity to
obtain additional life insurance protection and to choose the level of
coverage that’s right for you.
-
Group
Rates -
This plan is available to you at group rates, which are typically
lower than individual insurance rates.
-
Convenient
Payroll Deduction -
Your insurance costs are deducted from your paycheck, so there’s no
check writing or mail delay.
- Conversion
of Coverage -
If your employment ends for any reason, your term life coverages may
be converted within 31 days of termination (without having to furnish
evidence of insurability) to one of a number of Prudential individual
life insurance policies. The amount you convert may be limited if,
within the conversion period, you become insured for group life
insurance through a different employer. Please refer to your
personalized enrollment form for details.
Employee
Optional Term Life
Guaranteed
Coverage Amounts
Certain coverage is available without providing evidence of good
health. If you enroll within 31 days of your date of eligibility, you must
provide evidence of good health satisfactory to Prudential for coverage
amounts greater than $50,000. If you select a coverage amount greater than
$50,000, you must
complete a Health Statement Questionnaire. If you enroll after 31 days,
you must complete a Health Statement Questionnaire for any coverage amount
you select.
Living
Benefit Option
If you provide satisfactory proof that you are terminally ill with a life
expectancy of 6 months or less, you may elect to receive up to 50% of your
Optional Term Life coverage while still living, up to a maximum of
$50,000. This benefit is available only once and is payable in a lump sum
or in 6 equal monthly installments. The death benefit payable to your
beneficiary will be reduced by the amount you elect under this option.
Waiver
of Premium
If you are totally disabled for a continuous 9 month period and
are less than 60 years of age at the time disability begins, Prudential
will continue your coverage with no premiums due, provided you report your
disability within 12 months of its start and submit any required proof to
Prudential.
Reduction/Termination
of Coverage
At age 70, your amount of insurance will be reduced to 50% of your
coverage amount before any reduction. This coverage will end on
termination of your employment or retirement, however you may convert your
coverage to a Prudential individual life insurance policy, if applicable.
Upon retirement, your amount of insurance is limited to $5,000.
Enrolling
is Easy
This
is a general description of your benefits. Please carefully
review all available information, so you can make an informed decision about
participating in this program. Once you have elected your coverage, simply
complete the personalized enrollment form available from your bookkeeper
and/or the benefits office. Make
sure to complete all white pages, sign and date the form, and return as
instructed.
About
Prudential
Prudential
has been a trusted and reliable source of insurance and benefits products
for much of the 20th century. As a provider of life insurance
since 1916, Prudential is one of the most powerful brands in the insurance
and financial services industry. In the new millennium, Prudential
continues to be recognized for services and product features that help
meet diverse employee needs.
Rate
Sheet
Optional
Term Life - Coverage Rates per $1,000
Age
(Initial rates are based on
age as of effective date of your coverage. Rates will change based
on the following schedule.) |
Employee
Monthly Cost
of Insurance |
| 0-29 |
$0.070 |
| 30-34 |
$0.080 |
| 35-39 |
$0.110 |
| 40-44 |
$0.170 |
| 45-49 |
$0.230 |
| 50-54 |
$0.410 |
| 55-59 |
$0.700 |
| 60-64 |
$1.-010 |
| 65-69 |
$1.540 |
| 70-100 |
$2.900 |
How to determine your
cost
of insurance for Optional Life
For illustrative purposes only, consider a
42 year old employee selecting a coverage amount of $50,000 whose
deductions are taken monthly.
| Steps
to follow |
Example |
| In
this example, the individual is choosing a coverage amount of
$50,000 |
$50,000 |
| The
employee would then locate their age on their rate chart. We have
used a sample rate of $0.170 per $1,000 for this employee. |
42
years old
Sample - $0.17 rate per $1,000 |
| Divide
the selected amount of coverage by $1,000 and multiply the result
by the rate for that age group. This results in the total monthly
cost of insurance. (If the person were paid bi-weekly then the
$8.50 would be multiplied by 12 [12 months in a year] then divided
by 26 [52 weeks in a year divided by 2] for a total bi-weekiy
deduction of $3.92.) |
$50,000
/ $1,000 = 50
50 x $0.17 = Total Monthly Cost: $8.50 |
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