Optional Term Life Insurance
While you can’t always predict when something tragic might happen, you can always prepare for it. Optional Term Life Insurance can help provide your loved ones with some degree of financial wellness when it’s most needed.
Plan Type: Optional Term Life Insurance
Group Number: 52840
Eligibility: Active employees working 30 or more hours per week
Effective Date: 1st of the month after 30 days of continuous employment
Optional Term Life Insurance coverage is an important part of financial wellness because it helps you prepare financially for the unexpected. In addition to buying coverage for yourself, the Optional Term Life Insurance allows you to buy coverage for eligible dependents as well.
You can purchase coverage in increments of $10,000 up to a maximum of $500,000, not to exceed 5.0 times your covered annual earnings.
If you are newly eligible, you can elect a coverage amount up to the Guaranteed Issue amount of up to the lesser of 3.0 times your covered annual earnings or $300,000, without providing Evidence of Insurability (EOI) to Prudential. For coverage over the Guaranteed Issue amount up to the lesser of 5.0 times your covered annual earnings or $500,000 you will need to provide EOI.
For current participants or employees who waived coverage in the past, or any late Entrants who did not enroll when first eligible:
Your current coverage amount will be continued. During the open enrollment period. You can elect a coverage amount up to the lesser of 3.0 times your covered annual earnings or $300,000, without providing Evidence of Insurability. Evidence of Insurability will be required for all coverage amounts over the Guaranteed Issue amount or if enrolling after the open enrollment period.
Before buying Optional Dependent Term Life Insurance for your spouse, you will need to purchase coverage for yourself. Spousal coverage cannot exceed 50% of your Optional Term Life amount and comes with a Guaranteed Issue amount of $50,000. For coverage over the Guaranteed Issue amount up to the maximum amount allowed, you will need to provide EOI.
Before buying Optional Dependent Term Life Insurance for your child(ren), similar to your spouse, you will also need to purchase coverage for yourself. Child coverage limits cannot exceed $5,000 or $10,000 without Evidence of Insurability from live birth to age 26. You pay one premium regardless of the number of children.
The amount of Optional Term life insurance coverage you need is directly related to your life situation. Think about it… the more responsibilities you have, the greater your need to protect or replace your income should something happen to you. That’s why life events like marriage, parenting, and home purchases all have a direct impact on the amount of coverage you may require.
Use the Life Insurance Needs Calculator to determine how much Optional Term life Insurance is right for you.
Beneficiaries are really important in Optional term life insurance. A beneficiary is an individual or entity that will receive the proceeds of your life insurance policy. Since one of the main purposes of life insurance is to help ensure the financial wellness of your loved ones, you’ll want to make sure you name a beneficiary, and keep the information up to date. Naming a beneficiary will help avoid delays in getting benefits to your loved ones. You can designate a beneficiary by completing the beneficiary form and returning it to email@example.com