Group Variable Universal Life
FAQ
What is the GVUL Plan?
What opportunities does the GVUL Plan give you?
How can I apply if I currently do not have any coverage?
How do I transfer my CPA coverage to the GVUL Plan?
If I transfer to the GVUL Plan, can my Dependent Child Coverage and Waiver of Contribution Election stay in force?
What is Select Status?
What is Preferred Status?
How does my premium contribution get applied?
What are the significant tax advantages of the GVUL Plan?
What is the GVUL Plan?
GVUL is an insurance product whose goal - first and foremost - is to provide life insurance coverage to help secure your family's future. But GVUL is not traditional life insurance; it is a whole lot more. GVUL combines permanent life insurance coverage - up to age 100 - with a choice of tax-deferred investment options.
What opportunities does the GVUL Plan give you?
In addition to providing a death benefit to your beneficiaries, GVUL gives you benefits you can use, too. With GVUL, you get a choice of investment options, including a variety of stock and bond investment options from well-known fund families and a fixed account with a guaranteed minimum rate of return. The fixed account guarantee is based on the claims-paying ability of the issuing company.
How can I apply if I currently do not have any coverage?
Aon Benfield Securities, Inc. and Prudential offer this product by prospectus. The prospectus should be read carefully before investing or forwarding premiums or applying for coverage. Variable investment fund options are subject to investment risk. To obtain a prospectus, please call 1-800-223-7473.
How do I transfer my CPA coverage to the GVUL Plan?
You need to complete and submit the GVUL Request for Coverage/Enrollment Forms. To request the appropriate forms, call Aon Benfield Securities, Inc. at 1-800-223-7473. On the enrollment form, you allocate the percentages of the funds that you want to invest in and what amount of additional premium you might like to contribute. Participants, up to age 49, transferring from CPA to GVUL for the same coverage amount and optional features only need to complete an enrollment form. They are not required to complete a medical questionnaire or pass underwriting approval. Participants, age 50-74, transferring from CPA to GVUL for the same coverage amount and optional features, are required to complete an enrollment form, medical questionnaire, and pass underwriting approval.
If I transfer to the GVUL Plan, can my Dependent Child Coverage and Waiver of Contribution Election stay in force?
Yes, your Dependent Child Coverage and Waiver of Contribution election can stay in force.
What is Select Status?
Select Status is available to GVUL Participants age 45-79. It offers lower gross contribution rates and net costs for participants who submit evidence of good health. If approved, gross premium rates are lowered for a fifteen-year period, but not beyond age 79. Select Status can be continued at the end of each fifteen-year period with submission and approval of updated medical evidence. If you are not approved for Select Status, coverage will be continued, however it will be at the standard rate.
What is Preferred Status?
Preferred Status is available to GVUL Participants age 50-79 with at least $250,000 in coverage and is in excellent health. In addition to good health, driving record, tobacco use, family health history and certain avocations are also factors. Eligible members who can provide satisfactory evidence of insurability to Prudential - including a physical exam - are encouraged to apply for Preferred Status. In addition to lower rates, GVUL will continue to offer the same great coverage options, including coverage to age 100, variable investment options, and a tax-deferred fixed account with a guaranteed interest rate.
How does my premium contribution get applied?
Under GVUL, premium dollars have both insurance and investment components: your premiums cover the cost of your insurance coverage, plus you can put additional premium in GVUL's investment options or fixed account for the opportunity for tax-deferred growth.
What are the significant tax advantages of the GVUL Plan?
GVUL's tax benefits include:
- Tax-Deferred Earnings - Under current law, your investment earnings are tax-deferred, which can further add to your Certificate Fund's growth potential.
- Tax-Free Withdrawals - Because you withdraw the cost basis before any taxable amount, withdrawals from your account generally are tax-free. Interest, dividends and gains are tax-deferred and are generally not taxable as long as the amount of the withdrawal is less than your total contributions less any previous tax-free distributions. Loans and withdrawals will affect policy values and may have tax consequences. You should consult with your tax advisor.
In addition, if your contributions to GVUL exceed certain IRS limits and your GVUL certificate becomes a modified endowment contract (MEC), less favorable tax rules will apply for lifetime distributions such as loans and assignments. - Income Tax-Free Benefit to Your Beneficiaries - The death benefit, which is the face amount of the insurance plus the investment fund balance (less outstanding loans, interest and past due charges, if any), is paid to your beneficiaries.
| Ed 6/2011 | |
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