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Last Updated on Thursday, 31 January 2013

Nazarene Supplemental Group Term Life Insurance

The sudden death of a minister or spouse can leave a family (and a church) in dire straits. Life insurance to care for your loved ones in the event of such a situation makes good sense and good stewardship. That’s why the Church of the Nazarene offers additional supplemental group term life insurance coverage (up to a maximum of $250,000) for qualified ministers. Spousal coverage is available also.

Who is Eligible to Enroll in This Plan?

• Each ordained elder, deacon, and district-licensed minister who is a member of a U.S. district that pays into Pensions and Benefits Fund and who is younger than age 70, OR
• Each full-time and full-livelihood* lay person who is an employee of a Nazarene church or Nazarene church agency located on a U.S. district that pays into Pensions and Benefits Fund, who is active at work, and who is younger than age 70, OR
• Each retired person(lay or minister) who was an eligible person on the day immediately preceding retirement.
  * Full-time service is defined as serving no fewer than 30 hours per week for no fewer than 30 weeks each calendar year in Nazarene churches or district offices on U.S. districts that pay Pensions and Benefits Fund allocations. Full-livelihood is defined as deriving no less than 50% of personal net income for the calendar year from the local church or district being served. For Evangelists, full-time and full-livelihood service is defined as no fewer than 30 Sundays or 26 revival events per calendar year (as defined by the General Board of the Church of the Nazarene) in Nazarene churches on U.S. districts that pay Pensions and Benefits Fund allocations.

What Are the Benefits Under This Plan?

You may purchase coverage for yourself in increments of $10,000 up to a maximum of $250,000. Spousal coverage can be purchased in increments of $5,000 to a maximum of $125,000, not to exceed 50% of the coverage you purchase for yourself. Your dependent children** are also covered, at no cost, with 50% of the coverage you purchase for your spouse, not to exceed $20,000.

** Children are eligible if unmarried, dependent (including stepchildren and legally adopted and foster children), and between the ages of 14 days and 19 years. Newly born children are automatically covered upon reaching 14 days of age. Children who are full-time students and dependent upon the insured member for at least one-half support remain eligible to age 23.

How Can I Enroll in This Plan?

If you meet the eligibility requirements as noted above, contact the Pensions and Benefits USA office for the necessary enrollment forms.

What Does it Cost to Enroll in This Plan?

When Does My Coverage Start?

• Your coverage will start once all eligibility requirements are met, all required forms and payment is received, and approval by the insurance company.
• If you are applying after 90 days of the start of your eligibility, you must provide evidence of insurability and be approved by the insurance company before your coverage will become effective.

Do I Have to Wait to be Covered?

There is no waiting period.

Important Features and Limitations to the Plan

Guaranteed Issue Amount: The guaranteed issue amount is the amount of insurance that you may purchase without providing evidence of good health.

• If you currently have coverage and are younger than age 60 -
  • You may increase your coverage by one (1) $10,000 increment annually, not to exceed $250,000
  • You may increase your spousal coverage up to one (1) $5,000 increment annually, not to exceed $125,000 or 50% of your coverage
  • You may increase your child(ren) coverage up to 50% of your spouse’s coverage, not to exceed $20,000.
• If you or a dependent have been denied additional coverage, then evidence of good health is required for any requested coverage amount.
• If you do not have coverage and you elect coverage during an open enrollment period, evidence of good health might be required for any requested coverage amount.
• If you do not apply for coverage during an open enrollment period or within 90 days of eligibility, evidence of good health is required for any requested coverage amount.

Life Event Guaranteed Issue Amount: If you are younger than age 60, you may apply for insurance coverage or increase your insurance coverage not to exceed $250,000 within 90 days of the following Life Events:

• Your marriage
• The birth or adoption of a child
• Your first district ministerial license
• Your ordination
• Your first full-time and full-livelihood* employment by a qualified employer.

Evidence of Good Health: You need to provide evidence of good health for review and approval by Aetna’s underwriters in the following situations:

• If you do not enroll during an enrollment period or within 90 days of eligibility
• If you enroll for an amount above the guaranteed issue amounts

Age Reductions: Coverage for you will reduce as follows:
Age 60 - your coverage will reduce to $100,000 maximum
Age 65 - your coverage will reduce to $30,000 maximum
Age 70 - your coverage will reduce to $15,000 maximum
Age 75 - your coverage will reduce to $10,000 maximum
Age 80 - your coverage will reduce to $5,000 maximum
Age 95 - your coverage will reduce to $2,500 maximum

Age Reductions: Coverage for your spouse will reduce as follows:
Age 60 - spouse coverage will reduce to $50,000 maximum
Age 65 - spouse coverage will reduce to $15,000 maximum
Age 70 - spouse coverage will reduce to $7,500 maximum
Age 75 - spouse coverage will reduce to $5,000 maximum
Age 80 - spouse coverage will reduce to $2,500 maximum
Age 95 - spouse coverage will reduce to $1,000 maximum

These reductions will be effective on January 1 following your attainment of the applicable age.

Conversion: If you terminate employment, are no longer eligible for coverage, or your coverage reduces due to age, or is terminated due to pension or retirement, you have the opportunity to purchase an individual conversion life insurance policy within 31 days of your termination of coverage.

Premium Waiver: If you cease work due to a permanent and total disability before reaching age 65, your life insurance may be extended at no cost to you or your employer once you have completed a six month waiting period. If your claim is approved, your life insurance will continue until the earlier of the date you recover or the date you fail to show Aetna proof of continued disability, otherwise it terminates at age 70.

This Summary of Benefits explains the general purpose of the insurance described, but in no way change or affect the policy as it is actually issued. In the event of any discrepancy between any of these documents and the policy, the terms of the policy apply. To receive more details or to ask additional questions please contact the Pensions and Benefits office.

Policy Effective Date: January 1, 2009

Supplemental Group Term Life Insurance Plan Application

212.99 KB

Evidence of Insurability

402.17 KB

Beneficiary Change/Designation Form

631 KB

Choosing Your Life Insurance Beneficiary

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