NEA Group Term Life Insurance

Frequently Asked Questions

• Group Term Life
• Insurance Carrier
• No Medical Exam
• Coverage Available
• Increasing Coverage
• Changing Jobs
• Members-Only Low Rates
• Nonsmokers vs. Smokers Rates
• Spouse/Children Coverage
• Disability Waiver
• Accidental Death Rider
• Terminal Illness

Q. What is NEA Group Term Life?

A. NEA Group Term Life Insurance, issued by The Prudential Insurance Company of America, offers basic, decreasing term life insurance to all members in good standing. Group Term features include flexible coverage levels, from $25,000 to $500,000 (in $25,000 increments), no set term limits, and no medical exam.

For example, if a member purchases Group Term at age 22, they may keep it for as long as they want, provided they continue to pay their premiums. Premiums increase every five years. Your full benefit is guaranteed not to decrease before you turn 70. Then at age 70, when your need for life insurance has decreased, the benefit amount reduces to half the initial amount, and at age 75 to 10% of the initial amount.

Q. Who is the insurance carrier for NEA Group Term Life?

A. The Prudential Insurance Company of America is the carrier. Our 40-year alliance with the company is based on a rigorous process of evaluating the marketplace to find the best products and services for NEA members. You can count on Prudential’s high industry ratings and over 125 years of experience to offer the quality and service you deserve.

Q.  Do I need a medical exam?

A.  It’s easy to apply for coverage because no medical exam or blood work is required. To qualify, you need to answer a few simple health questions about your medical history. Although no medical exam is required, it may be necessary to have had a physical within the last three years depending on your medical history. You also must be an NEA 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. NEA Members are eligible for a range of coverage—anywhere from $25,000 up to a maximum of $500,000 (in $25,000 increments).

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. NEA Group Term Life coverage is portable. As long as you remain an NEA member and continue to pay your premiums when they are due, your coverage will remain in effect even if you change schools or retire.

Q. Are the members-only rates lower than the rates for the general public?

A. Yes, thanks to the buying power of the NEA and our 2.8 million members, special group discount rates are extended to members and their spouses/domestic partners. Premiums are competitive across rate categories.

Q. How do the rates for smokers and nonsmokers 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 $15.17 monthly versus $11.14 for a nonsmoker in the same age bracket.

Q. Can my spouse and dependent children be covered under this program?

A. Yes, as long as the NEA member has Group Term Life, coverage is available to the spouse (or domestic partner where permissible by law) of a member at 100% or more of the member’s coverage amount and to their children at a flat coverage amount of $10,000. Dependents can be covered up to age 21, or 25 if they are full-time students.

Q. How does the disability waiver of premium work?

A. If a member or spouse/domestic partner is fully disabled for a period of six consecutive months and is under age 60, their insurance premium will be waived for as long as they remain totally disabled. Written proof of total disability must be provided to The Prudential Insurance Company of America. This additional benefit must be elected and there is a small additional monthly premium for this benefit. Members and their spouses/domestic partners must be under the age of 55 to select the disability waiver of premium.

Q. Is there an optional accidental death rider?

A. Yes, the NEA Group Term Life Insurance Plan also offers an optional accidental death rider that doubles coverage for loss of life caused by a covered accident. This rider is available to both members and spouses. An additional monthly premium will be applied.

Q. Can I collect on my insurance if I become terminally ill?

A. Yes, with the Accelerated Benefit Option*, if you become terminally ill, you may elect to receive 50% 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 50%. To be eligible for this option, you must be diagnosed with a fatal illness and given 24 months or less to live.

View rate charts for NEA Group Term Life.

*The acceleration of life insurance benefits offered under this certificate are 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.

The Group Term Life coverage is issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102. The Booklet-Certificate contains all details, including any policy exclusions, limitations and restrictions, which may apply. Contract Series: 83500. California COA #1179 NAIC #68241.