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Portability
is a feature of the Trust's supplemental life insurance plan, allowing you to take your benefits
with you if you leave State service for any reason.
Feature effective July 1, 2003
•
You
can take your benefit with you at the same amount if you
apply for portability.
• Portability is offered only to members, not dependents.
• You must be enrolled in supplemental life coverage to apply.
• Rates are much lower than converted insurance, and you will not be refused for medical reasons.
Notes
•
Portability
coverage is still term life insurance,
not whole life insurance, offered at low
group rates.
• Protection
for the beneficiary of your choice.
• Your amount equals your supplemental life insurance benefit amount.
• You are eligible to convert your supplemental life coverage instead of applying for portability if you choose.
To Enroll
• Complete
the forms in the packet that Prudential will send to you within 31 days of leaving State service, and mail it to Prudential within the time frame they provide.
• To File A Claim: Same as now...Send a certified copy of the death certificate
to Prudential.
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When you leave
State employment for any reason, you may keep your term life
insurance by applying for portability. Your rates will change,
however, they will be less than the conversion rates would be.
Maintaining your coverage by porting provides you with financial
protection, and is one of the features of this supplemental
life insurance plan. Basic life insurance
is not eligible for portability. All other terms and conditions
of the supplemental life insurance plan apply, except as noted.
See the new Supplemental Life Insurance plan
booklet and your booklet-certificate from Prudential for
the final word.
If you
wish to maintain supplemental life insurance coverage when
you leave State employment, you have two options: 1) Apply
for portability for your supplemental life benefits OR 2)
Apply for conversion of your supplemental life benefits. Your
dependents may apply for conversion, but not portability.
In other words, you may apply for portability of your benefits
and conversion of your dependents’ benefits, or you may apply
for conversion of your and your dependent’s benefits. Both
portability and conversion are optional, and thus are not
automatic.
Any ported coverage will begin with Prudential the
first of the month following the end of your coverage under the Trust, provided that your application is accepted and that you pay the
premium as billed by Prudential. There will be no overlap or gap between your coverage as a Trust member and as an individual.
Your coverage will continue as long as you pay your premiums, up to age 90.
Applying for Portability
You may apply for portability within 45 days
of your last date of work. Only coverage in which you are
currently enrolled is eligible for porting. The amount you
may port is the amount of supplemental life insurance you
carry at the time you leave State employment. Spouse and child
benefits are not eligible for portability, but may be converted. The amount of coverage is guarantee issue,
but the rates may change based on the medical evidence
you submit to Prudential.
To apply,
you must complete a Portability form, available only from
Prudential. The form includes optional paperwork regarding
your health. If you complete the proof of good health section,
and Prudential accepts the evidence provided, you will be
eligible for preferred rates. If you do not supply medical
evidence satisfactory to Prudential, you will be eligible
for standard rates. Remember, the amount of your benefit will
not change based on the information you provide. Prudential
will notify you of their decision regarding the evidence of
insurability you provide when you submit the Portability form.
Benefit Amounts
Until
you reach age 65, the amount of life insurance you carried
as an active member apply, within the minimum
and maximum allowed. However, at age 65, your benefit
level will decrease as follows:
- 65% at age 65
- 50% at age 70
- 25% at age 75
- 0% at age 90.
Cost of Coverage
The rates are for the first year of your ported coverage, and are
are guaranteed for 12 months following enrollment, unless
your age bracket changes. Contact Prudential if you have a
concern about the cost. Your coverage amount is equal to your current supplemental life insurance benefit amount. You should only carry as much insurance as you need. Use
this worksheet to help you
determine the right amount.
The rates you are charged will be set by Prudential based on your coverage amount, and whether or not you have provided satisfactory proof of good health to receive the preferred rates. Prudential will charge $3.00 for each billing, which may be annual, semiannual or
quarterly. Contact Prudential about alternate payment arrangements.
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Supplemental
Life Insurance Rates
|
| |
| The
monthly cost shown below is for a unit of ported coverage
($10,000). |
| |
|
|
| Age
|
Preferred
Cost/Mo. |
Standard
Cost/Mo. |
|
Under
24
|
$ .69
|
$ .83
|
|
25-29
|
$ .87
|
$ 1.04
|
|
30-34
|
$ 1.00
|
$ 1.19
|
|
35-39
|
$ 1.10
|
$ 1.32
|
|
40-44
|
$ 1.43
|
$ 1.71
|
|
45-49
|
$ 1.93
|
$ 2.32
|
|
50-54
|
$ 3.26
|
$ 3.92
|
|
55-59
|
$ 5.82
|
$ 6.99
|
|
60-64
|
$ 9.61
|
$11.53
|
|
65-69
|
$17.28
|
$20.73
|
|
70-74
|
$33.03
|
$39.64
|
|
75-79
|
$54.91
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$64.89
|
|
80-84
|
$90.41
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$108.49
|
|
85-89
|
$139.28
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$167.13
|
| |
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These
rates are for ported coverage, and do not impact
the amount you pay for supplemental
life insurance coverage while actively employed.
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Other Important Portability Notes
Claims are paid to the beneficiary on record after a death claim is filed with Prudential. A certified copy of the death claim may be sent to:
The Prudential Insurance Company
of America
Group Life Administration
PO Box 13676
Philadelphia, Pennsylvania 19101
The Trust and your former Payroll/Personnel officer cannot help you once you port your coverage. The portability plan is administered through an insurance contract between you (the member) and The Prudential Life Insurance Company of America.
Ported coverage is term life insurance, not whole life insurance (whole life insurance
is the type of coverage you receive if you convert your coverage).
Whole life insurance is very different from term insurance,
as it attains a cash value, but the premiums, in general, will
cost substantially more than term life insurance premiums. Knowing
the differences in coverage may help
you decide.
Please call Prudential if you have questions at 800-778-3827
Reviewed May 2004
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