You probably know that it’s important to help protect your family and your finances, but figuring out what life insurance policies to sign up for can be confusing and time-consuming.
To help you sort through your options quickly, we compiled some key information here about 3 of our popular life insurance options: NEA Group Term Life Insurance, NEA Level Premium Group Term Life Insurance, and NEA Guaranteed Issue Life Insurance.
In just a few minutes, you’ll have a better sense of how these different insurance plans could help you so you’ll know which options to investigate further based on your own needs.
1. NEA® Group Term Life Insurance Plan
NEA’s exclusive negotiated group rates are typically very affordable, thanks to the combined power of our 3 million members. You can use this kind of group term life insurance to help safeguard your family with coverage amounts ranging from $25,000 to $500,000 to help your spouse and dependents pay for financial obligations such as a mortgage, college costs, an auto loan or anything else they’ll need to cover.
Watch this short video, then find out more in the FAQs below about group term life insurance and the options available to NEA members.
What is group term life insurance?
Group term life insurance can be very affordable because the rates have been negotiated on behalf of a large group (in our case, by leveraging the purchasing power of NEA’s 3 million members). You also have the flexibility to change your coverage amount at any time to best suit your needs as you age and your life changes.
Who can get an NEA Group Term Life Insurance policy?
NEA Group Term Life Insurance, issued by The Prudential Insurance Company of America (Prudential), offers basic, decreasing term life insurance to all NEA members in good standing. You can choose from flexible coverage levels, from $25,000 to $500,000 (in $25,000 increments), and there are no set term limits.
Under this plan, 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.
Is a medical exam required?
You’ll need to answer a few simple health questions about your medical history. Depending on the medical history disclosed in the application and/or the amount of coverage selected, it may be necessary for the insurance carrier to request medical records from your physician or for you to undergo a medical exam or medical tests. A medical exam is required for coverage amounts of $400,000 and greater.
The rates for smokers are higher than for non-smokers.
Could I ever be dropped for employment or health reasons?
Once you’re approved, your coverage amount remains the same, and you can’t be dropped, even if your job status or health status change. As long as you remain an NEA member, you can even have your premiums waived for up to one year if you lose your job or are affected by a natural disaster. If you’re under 55, you can elect to add a disability waiver to your policy (additional fee required) to extend your premium waiver if you become fully disabled for an extended period of time.
If you change schools or retire, your NEA Group Term Life Insurance coverage is portable as long as you remain an NEA member and continue to pay your premiums when they are due.
How affordable is an NEA Group Term Life Insurance policy?
It’s very affordable, and you can choose from a variety of coverage plans, ranging from $25,000 to $500,000 (in increments of $25,000). Depending on your age and smoker status, annual premiums for NEA members start at $21 for a $25,000 plan and $245 for a $500,000 plan, for example. You can check our
rate charts to determine how much a policy may cost based on the coverage amount desired, your age, and your smoker status.
When do the benefits kick in?
Benefits typically are paid out to beneficiaries upon the death of the policyholder. However, if you’re diagnosed with a terminal illness and given under 24 months to live, you may elect to begin receiving a portion of your life insurance coverage while you’re still living to help pay for expenses such as medical bills, outstanding debts and mortgage payments. This option does reduce the death benefit for your beneficiaries*, can affect eligibility for public assistance, and can have tax implications.
Where can I find more information about NEA Group Term Life Insurance?
2. NEA® Level Premium Group Term Life Insurance Plan
This insurance is similar to the NEA Group Term Life Insurance discussed above, but “Level Premium” indicates that this insurance plan offers the security of locked-in rates. Your NEA member rate won’t increase at all during your term, no matter your health or age, making it easier to budget and plan. You can choose term lengths of 10, 15 or 20 years, with coverage amounts ranging from $25,000 to $1,000,000 (in $50,000 increments), to help your loved ones manage large financial obligations.
Watch this short video, then find out more in the FAQs below about level premium group term life insurance and the options available to NEA members.
What is level premium group term life insurance?
Level premium group term life insurance offers affordable rates that you can lock in throughout the duration of your policy term. Knowing exactly what your policy expenses will be over the course of 10 to 20 years can help you plan and budget. Unlike a regular group term life insurance plan, your rates won’t increase as you age, and your benefits won’t decrease.
Who can get an NEA Level Premium Group Term Life Insurance policy?
NEA Level Premium Group Term Life Insurance, issued by The Prudential Insurance Company of America (Prudential), is available to all NEA members in good standing. It’s especially beneficial for younger members because you can lock in your rate for the duration of your policy at an age when your rates would be more affordable.
This policy also is appropriate for members whose financial obligations require a significantly higher coverage amount. You can choose plans ranging from $25,000 to $1,000,000 (in $50,000 increments).
Is a medical exam required?
You’ll need to answer a few simple health questions about your medical history. Depending on the medical history disclosed in the application and/or the amount of coverage selected, it may be necessary for the insurance carrier to request medical records from your physician or for you to undergo a medical exam or medical tests. A medical exam is required for coverage amounts of $400,000 and greater.
The rates for smokers are higher than for non-smokers.
Could I ever be dropped for employment or health reasons?
Once you’re approved, your coverage amount remains the same, and you can’t be dropped, even if your job status or health status change. As long as you remain an NEA member, you can even have your premiums waived for up to one year if you lose your job or are affected by a natural disaster. If you’re under 55, you can elect to add a disability waiver to your policy (additional fee required) to extend your premium waiver if you become fully disabled for an extended period of time.
If you change schools or retire, your NEA Level Premium Group Term Life Insurance coverage is portable as long as you remain an NEA member and continue to pay your premiums when they are due.
How affordable is an NEA Level Premium Group Term Life Insurance policy?
NEA’s exclusive negotiated rates are typically lower thanks to the combined power of our 3 million members. Plus, the younger you are when applying for this term life insurance, the lower the rate—and it stays locked in for the entire term you’ve chosen.
You can get a
rate quote to determine how much a policy may cost based on the coverage amount desired, your age, and your smoker status.
When do the benefits kick in?
Benefits typically are paid out to beneficiaries upon the death of the policyholder. However, if you’re diagnosed with a terminal illness and given under 24 months to live, you may elect to begin receiving a portion of your life insurance coverage while you’re still living to help pay for expenses such as medical bills, outstanding debts and mortgage payments. This option does reduce the death benefit for your beneficiaries*, can affect eligibility for public assistance, and can have tax implications.
Where can I find more information about NEA Level Premium Group Term Life Insurance?
3. NEA® Guaranteed Issue Life Insurance Plan
This type of life insurance is meant to provide a fixed amount of money, up to $20,000, to help your loved ones cover your final expenses and burial costs – to help them avoid financial hardship.
Watch this short video, then find out more in the FAQs below about guaranteed issue life insurance and the options available to NEA members.
What is guaranteed issue life insurance?
Guaranteed issue life insurance means it’s guaranteed to be issued—you can’t be turned down. Provide your loved ones with a lump sum to help cover your final expenses and burial costs. With the NEA Guaranteed Issue Life Insurance Plan, you can get coverage amounts up to $20,000, depending on your age.
Who can get an NEA Guaranteed Issue Life Insurance Plan policy?
NEA Guaranteed Issue Life Insurance Plan, issued by The Prudential Insurance Company of America (Prudential), is available to all NEA and NEA-retired members and their spouses/domestic partners age 45 and over. You won’t be turned away, you don’t need to answer any questions, and no medical exam is required.
How affordable is an NEA Guaranteed Issue Life Insurance Plan policy?
When do the benefits kick in?
In order for the NEA Members Insurance Trust to be able to provide this guaranteed-acceptance life insurance option to NEA and NEA-retired members and their spouses/domestic partners age 45 and over, the NEA Guaranteed Issue Life Insurance Plan benefits phase in over the first three years of the policy. Upon the death of the policyholder, the beneficiary would receive $500 during the first year of coverage, 25% of the coverage amount for the policyholder’s age during the second year, and 50% of the coverage amount for the policyholder’s age in the third year. After that, the policy pays at 100%. In case of accidental death at any time, the policy pays 100% of the benefit amount.
Where can I find more information about NEA Guaranteed Issue Life Insurance Plan?
*Accelerated Death Benefit option is a feature that is made available to group life insurance participants. It is not a health, nursing home or long-term care insurance benefit and is not designed to eliminate the need for those types of insurance coverage. The death benefit is reduced by the amount of the accelerated death benefit paid. There is no administrative fee to accelerate benefits. Receipt of accelerated death benefits may affect eligibility for public assistance and may be taxable. The federal income tax treatment of payments made under this rider depends upon whether the insured is the recipient of the benefits and is considered terminally ill. You may wish to seek professional tax advice before exercising this option.
This material may contain marketing language, on products issued by The Prudential Insurance Company of America,
that has not yet been approved in all states.
NEA Group Term Life Insurance, NEA Level Premium Group Term Life Insurance, and NEA Guaranteed Issue Life Insurance all are issued by The Prudential Insurance Company of America, Newark, NJ. The Booklet-Certificate contains all details including any policy exclusions, limitations and restrictions that may apply. CA COA #1179, NAIC #68241. Contract Series 83500, 31300.
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