Cost of the Insurance
The cost of the insurance is met from contributions to the Trust. The current required contributions for participation in the life insurance coverage under the CPA Life Insurance Plan depend on your age, coverage amount and options. The current required contributions for participation in the life insurance coverage under the Spouse Life Insurance Plan depend on your spouse’s age, coverage amount and options.
Evidence of Insurability
It is expected that most applicants who request Standard or Select rates will be accepted for coverage based on the answers to health questions and without further medical evidence. A brief medical exam is required to receive Preferred rates. Applicants who are not accepted can decide to provide additional medical evidence.
Reduction of Coverage at Age 75
On the first of October when or after you turn 75, your CPA Life coverage will decrease to an amount equal to 50% of the previous in-force amount or $500,000, whichever is less. This condition also applies to your spouse and coverage in the Spouse Life Plan.
When the Life Insurance Terminates
A member's CPA Life insurance may continue until coverage is automatically terminated at age 80. Earlier termination will occur if:
- the participant is no longer a member of the American Institute of Certified Public Accountants, any State Society of CPAs or other qualifying organization
- the Group Contract terminates
- the participant elects to withdraw from the Plan or fails to pay the required contributions to the Trust (member may also elect an available lower amount and thereby reduce his or her coverage)
Spouse Life Insurance terminates when your spouse reaches age 80, unless you discontinue the insurance earlier. Should you, as the Plan participant, die before your spouse, he or she may continue Spouse coverage until age 80.
Dependent Child Coverage under the CPA Life Insurance Plan will terminate under any of the following conditions:
- the participant’s CPA Life Insurance Plan coverage terminates
- the child no longer qualifies as an eligible dependent
- the CPA Life Insurance Plan itself is terminated
- the provision in the policy for the coverage terminates
If the participant is deceased, Dependent Child Coverage may be continued with Spouse Life Insurance, provided that the spouse’s coverage is in effect at the time of the participant's death, subject to the termination provisions shown above.
CPA Life Insurance Plan coverage can be reduced or terminated if the participant has attained a certain age, or if he or she is no longer a member of the American Institute of CPAs, a State Society of CPAs or other qualifying organization, or his or her membership is terminated and the coverage is reduced or terminated accordingly. If this happens, the participant can convert the amount by which the insurance was reduced or terminated to a Prudential individual life insurance policy. The participant can get this life insurance protection without taking a medical exam or answering health questions. There is also an option for your spouse to convert his or her coverage to an individual insurance policy.
To convert the insurance, the member must apply for the individual contract and pay the first premium according to the following rules:
- If the member has been given written notice of the conversion privilege within 15 days before or after he/she ceases to be insured for all or part of the insurance, he/she must apply for the individual contract and pay the first premium within 31 days after ceasing Insurance coverage.
- If the member has been given written notice of the conversion privilege more than 15 days but less than 90 days after he/she ceases to be insured for all or part of the insurance, he/she must apply for the individual contract and pay the first premium within 45 days after written notice has been given.
- If the member has not received written notice of the conversion privilege within 90 days after all or part of the insurance ceases, the time allowed for exercising the privilege ends at the end of 90 days.
If the insurance ends because all of the insurance ends for the insured's class, the total amount of individual insurance that is obtained through this privilege will not exceed the total amount of the insurance that was terminated under the Group Contract reduced by the amount of group life insurance from any carrier for which he/she becomes eligible within 45 days. A death benefit is payable under the Group Contract–even if the covered member did not apply for conversion–if the member dies within 31 days of the termination and while still entitled to convert according to the rules described above.
If the insurance for Dependent Child Coverage terminates for any of the reasons stated, all or part of the coverage may be converted to an individual life insurance policy. No evidence of insurability will be required. Special conversion rules apply for participants that reside in Minnesota.
The life insurance proceeds are paid to the designated beneficiary(ies). If there is more than one beneficiary, proceeds may be divided into equal or unequal shares. The proceeds are usually paid in a single sum. But you may also elect equal monthly installments of all or part of the proceeds (with interest) paid over a fixed period of time. There are several other settlement options that you can choose by mutual agreement with Prudential.
If there is a Beneficiary for the insurance, it is payable to that Beneficiary. Any amount of insurance for which there is no Beneficiary at your death will be payable to the first of the following: your (a) surviving spouse; (b) surviving child(ren) in equal shares; (c) surviving parents in equal shares; (d) surviving siblings in equal shares; (e) estate.
As the member, you will be the beneficiary of your spouse's life insurance. However, you may also choose to name someone else. If you name more than one beneficiary, proceeds may be divided into equal or unequal shares. Several modes of settlement options are also available by mutual agreement with Prudential.
To change your beneficiary(ies) or to change your legal name, please use the Change of Name/Beneficiary Form.
Your life insurance is payable for death from any cause except suicide within two years after the effective date of inception of coverage or an increase of coverage.
For Accidental Death and Dismemberment insurance, the loss must occur as a result of an accident while insured and within 90 days* after the date of the injury. Losses not covered are those resulting from the following: war; act of war; suicide, attempt at suicide; sickness; medical or surgical treatment of sickness, whether the loss results directly or indirectly from the treatment; any bacterial or viral infection (unless the infection was the result of an accidental injury or bacterial infection that results from the accidental ingestion of contaminated substances); or travel in an aircraft except as a passenger without duties aboard.
*The limit for Oregon residents is 180 days. No time limit applies to Pennsylvania residents.
Prudential cannot give legal or tax advice. Please consult your tax advisor. The CPA Life and Spouse Life Insurance Plans are subject to applicable laws and regulations.
The Prudential Insurance Company of America, a Prudential Financial Company, is the issuing company and is licensed in all states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. Principal offices are 751 Broad Street, Newark, NJ 07102-3777; phone 973-802-6000. The Plan Agent is Aon Insurance Services, 1100 Virginia Drive, Fort Washington, PA 19034-3278; phone 800-223-7473.
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