Q. What is SEIU Group Term Life?
A. SEIU Group Term Life Insurance, issued by The Prudential Insurance Company of America (Prudential), offers optional group term life insurance to all members in good standing. Group Term features include flexible coverage levels from $25,000 to $200,000 (in $25,000 increments) in addition to benefit amounts of $250,000 and $300,000, with no set term limits.
For example, if a member purchases SEIU Group Term Life Insurance at age 32, they may keep it for as long as they want, provided they continue to pay their premiums and maintain membership. Premiums are based on your age at the time you initially enroll. The premiums will increase each time you enter into a different 5-year age bracket (which occur when you turn 35, 40, 45, 50, etc.). Your full benefit is guaranteed not to decrease before you turn 65. Then, at age 65, when your need for life insurance has decreased, the benefit amount reduces to 75% of the initial amount, and at age 70 to 50% of the initial amount. Coverage terminates at age 75.
Q. Who is the insurance carrier for SEIU Group Term Life?
A. The Prudential Insurance Company of America is the carrier. Our alliance with the company is based on a rigorous process of evaluating the marketplace to find the best products and services for SEIU members. You can count on Prudential’s experience to offer the quality and service you deserve.
Q. Do I need a medical exam?
A. It’s easy to apply for coverage. In most cases, to qualify you need to answer a few simple health questions about your medical history. Although medical exams are not typically required, it may be necessary depending on your medical history. You also must be an SEIU member to apply for and maintain coverage. Once you are covered, you don’t have to be concerned about losing your coverage as you get older or if your health changes.
Q. How much coverage can I apply for?
A. SEIU Members are eligible for a range of coverage—anywhere from $25,000 up to a maximum of $300,000.
Q. Can I increase my initial coverage?
A. Yes, coverage can be increased anytime; however, it will be subject to underwriting approval and cannot exceed $300,000. (Amounts vary depending on the age of the member.)
Q. What if I change jobs or retire?
A. SEIU Group Term Life coverage is portable. As long as you remain an SEIU member and continue to pay your premiums when they are due, your coverage will remain in effect even if you change jobs or retire. Coverage terminates at age 75.
Q. Are the members-only rates lower than the rates for the general public?
A. Thanks to the buying power of SEIU and our two million members, affordable rates have been negotiated for members and their spouses/domestic partners. Premiums are competitive across rate categories.
Q. How do the rates for smokers and non-smokers differ?
A. The rates for smokers are higher. For example, on a face amount of $200,000, a member 25 to 29 years old would receive a rate of $30.00 monthly versus $18.00 for a non-smoker in the same age bracket.
Q. Can my spouse and dependent children be covered under this program?
A. Yes, as long as the SEIU member has Group Term Life, coverage is available to the spouse (or domestic partner where permissible by law) of a member for up to 50% of the member’s coverage amount and to their children at flat coverage amounts of $5,000 or $10,000.
Q. Are benefits available if I become terminally ill?
A. Yes, with the Accelerated Benefit Option*, if you become terminally ill, you may elect to receive 75% of your life insurance coverage while you are still living. The money can be used for any purpose such as medical bills, outstanding debts or mortgage payments. This option will reduce your death benefit by 75%. To be eligible for this option, you must be diagnosed with a fatal illness and given 6 months or less to live.
*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.
SEIU Group Term Life coverage is issued by The Prudential Insurance Company of America, Newark, NJ. The Booklet-Certificate contains all details, including any policy exclusions, limitations and restrictions, which may apply. Contract Series: 83500. California COA #1179 NAIC #68241.