NAPFA Group Term Life FAQ's

 

All of the answers contained in this document that relate to policy benefits, limitations and exclusions are abbreviations of the contractual guarantees contained within the policy certificate and do not modify the certificate in any way. Please refer to the NAPFA Group Policy Certificate for actual wording. 

 

What type of life insurance is this? Is it guaranteed level premium term?

 

No, these rates are not guaranteed but are only expected to increase as you enter a new five year age band (ie 35-39, 40-44, etc.). You can use the Life Benefits and Rate Calculator to project future premiums using different ages.

 

Who is eligible to participate?

NAPFA members must be a member for at least on full calendar year to be eligible. On the one year anniversary you have 60 days to enroll for guaranteed acceptance coverage. Outside of the one year and 60 day date you can still enroll, but medical underwriting is required. 
Dues paying members working a minimum of 20 hours per week who fall into these NAPFA member categories:

a. NAPFA Registered Financial Advisors,
b. NAPFA Associates
c. Student Affiliates

Employees of members of the categories above working a minimum of 20 hours a week are also eligible but must be employed for at least one full year before they are eligible. On the one year anniversary you have 60 days to enroll for the guaranteed acceptance coverage. Outside of the one year and 60 day date you can still enroll, but medical underwriting is required. 

 

How do I enroll?

 

If you are an eligible NAPFA member you will need the online Life Application. You will also need to complete and sign a separate Beneficiary Designation form which will be linked into the application.  

 

NAPFA members can apply guaranteed acceptance (no medical questions) after one year of their date of membership and within the first 60 days of that one year date. 

 

Employees of NAPFA members or a NAPFA Member Firm must be employed by a member and be working at least 20 hours per week. They can apply guaranteed acceptance (no medical questions) after one year of their date of membership and within the first 60 days of that one year date. 

 

Will I need to answer medical questions or have a medical exam to enroll?

 

Yes, if you are outside of the guaranteed acceptance enrollment dates you will need to complete a Medical Health Statement. Standard Insurance will be in touch with you regarding further requirements, such as an exam.

 

You will either be approved or declined for coverage. If you are declined, you will not be eligible for any Open Enrollments which may be offered in the future.

 

Will I be able to increase my benefits after I am enrolled?

IF you purchase at least $50,000 of member life coverage now, you will have the option to add an additional $10,000 of coverage on each policy anniversary without medical evidence until you reach the maximum Guarantee Issue amount for your age group. (See #7 below)

 

How do I enroll?

On the website, complete the Life Application and sign a separate Beneficiary Designation form which will be linked into the application.  

 

Will I need to answer medical questions or have a medical exam to enroll?

Not during the open enrollment period.

 

Will I be required to provide any financial evidence?

No, you will not be asked any financial questions nor be required to provide any financial information.

 

How much coverage is available?

Members and their employees under age 65 can enroll for up to $250,000, Guarantee Issue; Age 65-69, $162,500, Age 70-74, $125,000, and age 75+, $87,500. If you are interested in higher face amounts, contact our office at 800.796.0909 x106.

 

Are there age based benefit reductions?

Yes, benefits (and premiums) will reduce to 65% at age 65; to 50% at age 70, and to 35% at age 75. (Benefits will reduce by the same percentages for your spouse, based on your age.)

 

When will my coverage begin?

Coverage will become effective 12/1/2015 after the open enrollment and/or when your eligibility has been confirmed.

 

How will premiums be collected?

Premiums are paid by monthly bank draft. Debits will occur on the 11th of each month or nearest banking day thereafter. Detail on your bank statement will read, "Association Plans, LLC NAPFA Life".

 

NOTE: Premiums are in 5 year age brackets. (Age 40-44, 45-49, etc.) Your premiums will be adjusted the month following any birthday that moves you into the next bracket. You can use the "Life Benefits and Rate Calculators" to see how premiums will adjust over time based on current rates.

 

Is coverage available for my spouse?

Yes, you can purchase $20,000 or $25,000 of coverage for your spouse Guarantee Issue when you enroll for your coverage. Spouse premiums are the same as member premiums and are based on the member's age. Partners in a Civil Union are eligible for spouse coverage.

 

Is coverage available for my children?

Yes, you can purchase $2,000 or $10,000 of child (dependents) coverage. Coverage includes unmarried child(ren) from live birth through age 20, or through age 24 if the child is a full-time registered student. Children of partners in a Civil Union are eligible for dependent coverage.

 

Other Benefits:

 

Is there a Waiver of Premium benefit?

Yes, Waiver of Premium is included for those disabled prior to age 60. The schedule of age reductions will not apply while a member is on Waiver. Waiver ends at age 65.

 

Is there a Travel Assistance benefit?

Yes, Travel Assistance is included. This service provides plan participants with access to appropriate medical care and other emergency services whenever traveling at least 100 miles from home or in a foreign country for trips lasting up to 180 days. Travel Assistance offers a range of professional, 24-hour medical and legal assistance and coordination services.

 

Is there an Accelerated Benefit?

Yes, an Accelerated Benefit is included. Terminally ill members may withdraw up to 75% of their Life benefit.

 

Is there a Repatriation Benefit?

Yes, a Repatriation Benefit, which provides an additional benefit to help pay for the expenses of transporting a member's body when the member dies more than 200 miles from home, is included.

 

Are there Accidental Death and Dismemberment (AD&D) benefits?

Yes, AD&D equal to the amount(s) of Member, Spouse, and Dependent Coverage is included in the rates.

 

A Family Benefits package is also included. It provides extra AD&D benefits to help families transition due to the loss of an insured member. The package includes a Child Care Benefit (child care expense reimbursement for children under age 13); a Career Adjustment Benefit (education expense reimbursement for spouses); and a Higher Education Benefit (college expense reimbursement for children).

 

A Seat Belt and an Air Bag Benefit are included. These provide additional benefits (100% of AD&D benefit up to $10,000 and 100% of AD&D benefit up to $5,000, respectively) if a member dies as a result of an automobile accident while using a seat belt system and where the automobile's air bag deployed at the time of the accident.

 

Can this coverage be ported or converted if I become ineligible to remain in the group?

Yes, if you become ineligible because you are no longer an NAPFA member and/or because you no longer meet the 20 hour per week work requirements you can Port (you must be in good health) or Convert (guaranteed conversion) your coverage. Rates for Porting or Converting will be higher than the Group premium rates. It is your responsibility to inform us (Ryan Insurance Strategy Consultants) if you become ineligible.

 

Can the policy be canceled?

Yes. The policy could be canceled or modifies by FPA or by Standard Insurance.