Group Universal Life

Group Universal Life  

Overview

What would happen to your family if you were no longer there to provide for them? Do you have enough life insurance for them to keep their home, pay all the monthly bills, and afford college for your children and other future expenses?

Group Universal Life Insurance helps provide the financial resources your family may need to carry on.

With this type of life insurance, you can:

  • Enroll with ease. Apply within 60 days of your eligibility date and you may not have to answer medical questions or provide evidence of insurability.
  • Choose your coverage amount. You can enroll in coverage amounts from 1.5 to 8 times your base pay, subject to a minimum amount of $25,000 and a maximum of $3,000,000. You can enroll your spouse in coverage in increments of $25,000 up to $100,000, and in increments of $50,000 from $100,000 up to a maximum of $250,000 and your children in the following benefit amount: $10,000. Proof of good health may be required.
  • Build tax-deferred savings. A cash fund option offers tax-deferred savings and a guaranteed minimum interest rate of 4.0%. With this option, you reduce your risk of becoming underinsured.
  • Access low-interest loans. You can get a low-interest loan if you build up enough cash value in your plan.
  • Use the Accelerated Benefit. You access 50% of your benefit amount early if you’re diagnosed with a terminal illness.

 

How It Works

Enrollment

Find coverage that's right for you and your loved ones!
Coverage in the GUL program must be delayed until Prudential receives all necessary regulatory policy form approvals in your state. In the interim, Prudential will provide you with life insurance protection under an Optional Term Life Insurance Plan until receipt of the necessary form approvals. Premium contributions for the Optional Term Life Insurance plan are the same as it is for GUL. Upon receipt of the requisite approval, the face amount of your Optional Term Life Insurance coverage will be automatically transferred to GUL coverage. Once that transfer occurs, you will then be able to commence contributions to your cash accumulation fund. If you choose not to enroll in GUL coverage at this time, the plan’s rules for late enrollment will apply.

FAQS

Answers about the plan, including eligibility, options, enrollment, customer service and more.
  • Who needs life insurance?

    Everyone needs life insurance.
    Contrary to popular belief, life insurance isn't just for parents. You may need life insurance if anyone is financially dependent on you.


    You've recently graduated from college.
    You may have significant student loan obligations. If something were to happen to you, your loved ones would most likely be forced to shoulder that debt.


    You're the parent of small children.
    You want to make sure they'll be able to keep the same lifestyle and attend college—even if you're not there to see it happen.


    Your grown children are on their own.
    But your children may rely on you for support and help around the house. If you weren't there for them, your children would need extra money to pay someone to take care of things you've been managing for them.


    Your spouse may be depending on your income for retirement.
    But you're not sure your retirement savings is enough to keep up with a rising cost of living if your paycheck stopped. Life insurance can be a smart way to fill the gap.


    Like many families, you rely on two incomes to make ends meet.
    You'll need life insurance on both you and your spouse. Even if your spouse stays at home, you should consider life insurance on your spouse to help cover the cost of hiring someone to take care of the things your spouse generally handles.


    You want to be sure your children can protect their futures, too.

    Most children's life insurance coverage contains an innovative feature that allows them to convert their term life coverage to a permanent life insurance plan at a higher premium when they become adults. This ensures that your children can protect their own families—no matter what health problems they may develop.

  • Who is Prudential?

    For over 140 years, The Prudential Insurance Company of America (Prudential) has helped individual and institutional customers grow and help protect their wealth.

  • Who can enroll?

    You can enroll if you:

    • Are a regular, full-time associate or a regular, part-time associate working at least 32 hours per week.
    • Are actively at work on both the date the enrollment form is signed and the effective date of coverage.
    • Meet the eligibility requirements on the enrollment form.
    • Are a U.S. citizen or U.S. permanent resident.

     

    If you enroll, you can also enroll these family members:

    • Your legal spouse
    • Your dependent children or those of your spouse
  • When can I enroll?

    You can enroll anytime!

    At certain times, you may enroll in the Group Universal Life plan without having to answer many questions. These times include:

    • Within 60 days of your initial eligibility date.
    • During special enrollment periods as offered by your employer and the insurance provider.
    • Within 31 days of marriage.
    • Within 31 days of the birth or adoption of your first child. Coverage for a newborn will begin when the child is 14 days old, however the application for coverage could be received immediately following the birth.
  • How much will this coverage cost?

    Associate and Spouse Coverage

    Monthly cost of insurance per $1,000 coverage unit

    Age* Non-Smoker Smoker
    Under 25 $0.039 $0.047
    25-29 $0.047 $0.055
    30-34 $0.055 $0.062
    35-39 $0.062 $0.078
    40-44 $0.078 $0.100
    45-49 $0.140 $0.170
    50-54 $0.209 $0.256
    55-59 $0.372 $0.465
    60-64 $0.557 $0.697
    65-69 $1.046 $1.589
    70 and over Available upon request Available upon request

     

    *Use Age as of April 1 of the prior year.

     

    Child Coverage

    Coverage Amount Monthly Cost
    $10,000 $0.96
  • What if my employment status changes?

    When you leave or retire from your current employer, you can continue your coverage without interruption as long as the group policy is in effect, subject to applicable law and the policies' terms and conditions. Although payroll deduction will no longer be available, you can opt for other payment methods such as direct bank account deduction, credit card billing or home billing. Higher rates may apply.

  • Why choose Group Universal Life over other life insurance plans?

    Perhaps the best advantage of Group Universal Life Insurance is the cash you can choose to contribute into a special interest-bearing, tax deferred account. Withdrawals are often paid out tax-free.1 You can access the money whenever you want and for whatever you want. You can also take a loan against the value in your cash fund and continue to earn interest on the borrowed amount. Minimum withdrawal amount is $200.

     

    1Withdrawals and unpaid loans generally reduce death benefits. In general, loans are not taxable, but withdrawals are taxable to the extent they exceed cost basis in the Certificate. Loans outstanding at certificate lapse or surrender prior to the death of the insured will cause immediate taxation to the extent of gain in the Certificate.

  • Are there other benefits to this plan?

    Additional benefits include:

    • Nonsmoker rates: Reduced rates are available if the insured has not smoked or used any form of tobacco for 12 consecutive months before the date you complete the enrollment form. (If the insured qualifies at a later date, you may change your rate to nonsmoker by completing a smoker change form.)
    • Automatic Coverage Increase: Your associate coverage will automatically increase annually. If you would like to opt out of this feature, you must contact Mercer Voluntary Benefits.
    • Accelerated Benefit Rider:
      • An advance payment of your life insurance benefits is available if you are diagnosed with a terminal illness with a life expectancy of 6 months or less.
      • You can request payment up to 50 percent of your coverage amount, up to a maximum of $125,000.
      • Advance payment permanently reduces the death benefit.
      • Premiums must continue to be paid on the remaining coverage amount after an advanced payment.
      • This benefit is available to you and your covered spouse.
    • Children's Portability Privilege: When your child is no longer an eligible dependent, he or she can apply for an increase in coverage up to 5 times the amount of the children's rider up to $50,000, as long as the group policy is still in effect. The child will be issued a Group Universal Life certificate and will be eligible to contribute to a cash fund. The request for coverage must be made by writing to Mercer Voluntary Benefits within 31 days of the date the child is no longer an eligible dependent.

      A Children’s Portability Privilege is not available for a disabled child. Children's coverage may be continued for a disabled child as a rider to the existing adult Group Universal Life certificate. The dependent rider may remain in effect as long as the employee or spouse maintains coverage. Please contact Mercer Voluntary Benefits to request continued coverage for a disabled child.
  • When would my coverage start?

    If evidence of good health is required...
    Coverage is effective on the first of the month after coverage is approved by Prudential.

    If evidence of good health is not required...

    Coverage is effective the first day of the month in which your first payroll deduction begins.

These materials are for informational or educational purposes. In providing these materials, Prudential (i) is not acting as your fiduciary as defined by the Department of Labor and is not giving advice in a fiduciary capacity and (ii) is not undertaking to provide impartial investment advice as Prudential will receive compensation for its services/products.

 

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” “chronically ill”. You may wish to seek professional tax advice before exercising this option.

 

Group Insurance coverages are issues by The Prudential Insurance Company of America, a Prudential Financial Company, Newark NJ. The Booklet-Certificate contains all details, including any policy exclusions, limitations, and restrictions, which may apply. California COA #1179, NAIC #68241. Contract Series: 83500 and 96945.

1013486-00001-00

 

Contact Us

 Address
Mercer Voluntary Benefits
12421 Meredith Drive
Urbandale, IA 50398
 Phone
1-800-638-6854
 Hours
 M-F 9a-6p ET
 Email
employerbenefitsinquiries.service@mercer.com
Mercer's Role & Compensation

Details of Mercer disclosure of the compensation.