CPA Life and Spouse Life Insurance
Important Notices
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 request 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:
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the participant is no longer a member of the American Institute of Certified Public Accountants, any State Society of CPAs or other qualifying organization
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the Group Contract terminates
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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:
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the participant’s CPA Life Insurance Plan coverage terminates
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the child no longer qualifies as an eligible dependent
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the CPA Life Insurance Plan itself is terminated
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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.
Conversion Privilege
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:
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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.
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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.
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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.
Beneficiary
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.
Exclusions
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, or 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.
CPA Level Premium Term and Spouse Level Premium Term Life Insurance
Important Notices
Cost of 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 LPT Insurance Plan are set forth in the material provided.
When Life Insurance Terminates
You and your spouse’s life insurance coverage will terminate when: a) you or your spouse reach age 95; b) you cease to be a member of the AICPA; c) your Group Policy terminates; or d) you or your spouse choose to withdraw from the Plan or fail to pay the required contributions to the Trust.
Dependent Child Coverage under the LPT Insurance Plan will terminate under any of the following conditions: the CPA’s coverage ends, the child no longer qualifies as an eligible dependent, the LPT Life Insurance Plan itself is terminated, or the provision in the policy for the coverage terminates. If the CPA is deceased, Dependent Child Coverage may be continued with the Spouse Level Premium Term Insurance or with Spouse Life Insurance, provided the spouse’s coverage is in effect at the time of the CPA’s death, subject to the same termination provisions shown above.
Conversion Privilege
If LPT coverage terminates because the CPA is no longer a member of the AICPA, the member or spouse can convert the amount terminated to a Prudential individual life insurance policy. The member or spouse can get this life insurance protection without taking a medical exam or answering health questions.
To convert the insurance, the member or spouse must apply for the individual contract and pay the first premium according to the following rules:
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if the member or spouse has been given written notice of the conversion privilege within 15 days before or after he/she ceases to be insured, he or she must apply for the individual contract and pay the first premium within 31 days after ceasing the insurance coverage.
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if he/she 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, he/she must apply for the individual contract and pay the first premium within 45 days after written notice has been given.
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if he/she has not received written notice of the conversion privilege within 90 days after 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 a dependent child terminates for any of the reasons stated, all or part of the Dependent Child Coverage may be converted to an individual life insurance policy, no evidence of insurability will be required. For plans covering Minnesota residents, special rules apply for conversions.
Beneficiary
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.
Exclusions
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, or 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 Level Premium Term Life Insurance Plan is subject to applicable laws and regulations.
Group Variable Universal Life Insurance
Important Notices
Cost of Insurance
Each month a charge to cover the cost of your life insurance protection is deducted from your Certificate Fund, provided there's enough money in the Fund. If there isn't enough money to cover the Cost of Insurance, your Certificate goes into default and a grace period begins. Your Certificate will lapse unless a payment is made within this time period.
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
GVUL offers coverage to age 100, as long as you remain a member of the AICPA and/or State Society of CPAs or other qualifying organization. GVUL insurance may reduce to 75% at age 75, to 50% at age 80. Reductions at ages 75+ do not affect Preferred eligibility as long as the reduced coverage amount is at least $190,000.
At any age, however, your coverage will not be reduced to an amount lower than the greater of five times the amount in your Certificate Fund or the lowest face amount needed to keep your coverage within the Internal Revenue Code definition of Life Insurance without reducing the Certificate Fund. These changes occur on the first of October when or after you turn 75.
Note that reductions in coverage may cause your Certificate to become a Modified Endowment Contract (MEC). Distributions from MECs receive less favorable tax treatment than distributions for coverage that is not a MEC.
When the Life Insurance Terminates
A member's GVUL insurance may continue until coverage is automatically terminated at age 100. Earlier termination will occur if:
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the participant is no longer a member of the AICPA, a State Society of CPAs or other qualifying organization
-
the Group Contract terminates
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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)
Dependent Child Coverage under the GVUL Insurance Plan will terminate under any of the following conditions:
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the participant's GVUL Insurance Plan coverage terminates
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the child no longer qualifies as an eligible dependent
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the GVUL Insurance Plan itself is terminated
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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.
Conversion Privilege
GVUL 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 AICPA, 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.
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.
Beneficiary
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.
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.
Exclusions
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, or 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.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT — To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.
Long Term Disability Insurance
The insurance does not cover a disability caused by or contributed by any act of war (including undeclared war and resistance to armed aggression), intentionally self-inflicted injury or attempted suicide.
Plan participants must meet the cost of insurance from contributions to the Trust. The current contribution rates are set forth on this website.
Group Life Insurance
Life Insurance
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 in coverage resulting from a change in schedule, a change in earnings basis, or a change in class.
Accidental Death and Dismemberment (AD&D) Insurance
AD&D benefits are paid when a covered loss occurs as a result of an accident while insured and within 90 days after the injury is sustained. Losses not covered are those resulting from war; act of war; suicide, or attempt at suicide; sickness, whether the Loss results directly or indirectly from the sickness; medical or surgical treatment of sickness, whether the Loss results directly or indirectly from the treatment; or travel in an aircraft except as a passenger without duties aboard.
Employment Waiting Period
If elected by the firm, the Employment Waiting Period is the period extending from the employee's date of employment to the completion of six months of continuous full-time service with the employer, or a total of six months of service on a full-time basis with one or more employers, provided that this service was completed within the 12-month period immediately preceding the employee's date of employment with the current employer.
Important Notice
The Certificate of Insurance that insureds receive describes the benefits and other provisions more fully. The complete terms of the Master Group Insurance Policy governs at all times.
Group Elite Life Insurance
Life Insurance
Payable for death from any cause, except suicide within two years after the effective date of inception of coverage, or an increase in coverage resulting from a change in schedule, a change in earnings basis, or a change in class.
Accidental Death and Dismemberment Insurance
AD&D benefits are paid when a covered loss occurs as a result of an accident while insured and within 90 days after the injury is sustained. Losses not covered are those resulting from war; act of war; suicide, or attempt at suicide; sickness, whether the Loss results directly or indirectly from the sickness; medical or surgical treatment of sickness, whether the Loss results directly or indirectly from the treatment; or travel in an aircraft except as a passenger without duties aboard.
Important Notice
The Certificate of Insurance that insureds receive describes the benefits and other provisions more fully. The complete terms of the Master Group Insurance Policy governs at all times.
Group Elite Long Term Disability Insurance
Exclusions and Notices
The insurance does not cover a disability caused by or contributed by: any war, or act of war (including undeclared war); intentionally self-inflicted bodily injury or attempted suicide; active participation in a riot; commission or attempt to commit a felony; or pregnancy, except complications of pregnancy will be treated as any other sickness.
The plan does not cover a disability due to a pre-existing condition during the 12 months after your effective date of coverage. See certificate for details.
Employment Waiting Period
If elected by the firm, the Employment Waiting Period is the period extending from the employee's date of employment to the completion of six months of continuous full-time service with the employer, or a total of six months of service on a full-time basis with one or more employers, provided that this service was completed within the twelve-month period immediately preceding the employee's date of employment with the current employer.
Important Notice
The Certificate of Insurance that insured firms receive describes the benefits and other provisions more fully. The complete terms of the Master Group Insurance Policy governs at all times.
*Disabilities due to mental illness and nervous disease have a limited pay period of 24 months during your lifetime.
Business Overhead Expense
Exclusions
Your covered expenses exclude the following:
- Any salaries, fees, drawing accounts or other remuneration for you, a close relative or any person who is hired to be your replacement
- Salaries of employees hired after the start of your disability and close relatives hired within six months of the start of disability
- Payment of principal for any debts
- Income taxes
- Cost of new merchandise, goods, materials, equipment, leased automobiles, furniture or fixtures
- Payment of your or your partner's annuity or retirement plan
- Personal expenses such as vehicle expenses, club fees, salary, draw, fees, or profit, charitable contributions and life insurance
- For a partnership or shared facility, any shared expenses for which you are not regularly liable for payment
Your Plan does not cover any disabilities caused by, contributed to by, or resulting from any of the following:
- Intentional self-inflicted injuries or attempted suicide
- Injury sustained in aviation, other than as a fare-paying passenger on a scheduled or charter flight operated by a scheduled airline
- Active participation in a riot
- Commission of a felony that you have been convicted of under state, provincial or federal law
- Injury sustained while you are serving as a member of the armed forces of any country or international authority
- War, declared or undeclared, or any act of war
- Pregnancy, but this does not include a complication of pregnancy.
For additional information please reference your booklet-certificate.