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Supplemental Life Insurance

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.

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.


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

$64.89

80-84

$90.41

$108.49

85-89

$139.28

$167.13

 

These rates are for ported coverage, and do not impact the amount you pay for supplemental life insurance coverage while actively employed.

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