Optional Term Life insurance allows you to choose higher levels of coverage that you usually pay for through convenient payroll deductions. There are a lot of reasons to enroll for Group Optional Term Life insurance issued by The Prudential Insurance Company of America (Prudential) . .....
Benefits to You
- It's convenient. You can purchase your insurance at work—no need to set up appointments and sort through quotes.
- It's cost effective. Group rates are often less than the rates you can get on an individual policy.
- No medical questions. Prudential and your employer may decide on an initial and/or periodic open enrollment period. During this time, eligible employees may enroll for coverage without providing medical evidence up to certain guaranteed issue limits. The most common initial enrollment period is 31 days.
- You may take your Prudential coverage with you. Many Prudential group policies allow you to continue your coverage—at group rates—even after you leave your current employer.1
- You may be able to convert your group coverage to individual coverage. If your group life coverage ends, you have the option to convert your coverage to a Prudential individual whole life insurance policy. (In New York, you may convert your coverage to an individual whole life policy or an individual term life policy.)
- If you become terminally ill, we can help. Under Prudential's Accelerated Benefit Option, terminally ill employees with a limited life expectancy can be paid part of their group life benefit while they are still living. Employees are free to spend the proceeds as they wish. Benefits are payable in instances where life expectancy is under six months (may be extended up to two years depending on the state and the policy). Death benefits will be reduced by this election.2
- If you become disabled we may waive your premium. The Wavier of Premium option, available with most optional group life products, is designed to help you avoid the financial hardship of premium payments if you become disabled. Generally, Prudential will continue coverage at no cost to you if you are totally disabled for a continuous nine-month period and are covered at the time of disability. Coverage continues provided you meet the definition of disability and report the disability within 12 months of its occurrence. Thereafter, coverage may be continued for successive one-year periods, provided written proof of continued disability is furnished to Prudential as required.
Limitations and Exclusions
Optional Term Life coverage is subject to certain limitations and exclusions. Please consult your Booklet-Certificate for details.
Reductions Due to Age
Optional Term Life coverage may be reduced at certain ages. Such reductions will be expressed as a percentage of your coverage prior to the age reduction. Please consult your Booklet-Certificate for details.
Effective Date of Coverage
Generally, Optional Term Life coverage begins on the first day you're eligible, you've satisfied any medical evidence requirements and you're actively at work.
1Special rules may apply for Minnesota residents.
2 The acceleration of life insurance benefits offered under this certificate is intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986, IRC Section code 101(g). If the acceleration of life insurance benefits qualifies for such favorable tax treatment, the benefits will be excludable from your income and not subject to federal taxation. Tax laws relating to the acceleration of life benefits are complex. You are advised to consult with a qualified tax advisor about circumstances under which you could receive acceleration of life insurance benefits excludable from income under federal law.