Basic
Basic life insurance is usually offered as a benefit fully paid for by the employer. The employee would not pay any premiums for this coverage. What word do we use to describe policies where the employee does not pay premiums?
Non-Contributory
What is optional life insurance?
It is "contributory" insurance that the employee chooses to purchase. Usually as a supplement to the basic life insurance provided by the employer.
Only two types familial relations can be covered under a dependent policy, what are they?
Spouse and Child
What does AD&D stand for?
Accidental Death and Dismemberment
Naomi Wei calls in and advises that she no longer works for her employer but would like to keep her life insurance with Prudential. What process is she asking about?
Conversion
Does Prudential Group insurance offer whole-life policies?
No, all GI policies are TERM insurance.
What is the "extra" component that makes Group Universal Life (GUL) different from other types of life insurance?
The "side fund" that the employee can contribute to or withdraw from.
If you see a dependent policy (DDBAS/DDOPT) on a claim, what can we assume about the covered person (deceased)?
They they were NOT the employee/policyholder, it is either their spouse or child.
What makes AD&D insurance more attractive than other types of coverage?/Why might you opt in to AD&D even if you aren't purchasing other coverages?
It is much cheaper than regular life insurance policies.
Hazel Washington, a longtime Walmart employee advises that she has received a letter in the mail and she doesn't understand it. She says that she just retired last week and the letter mentions a 31 day deadline. What is this letter most likely about?
It is a conversion notice, letting her know that if she would like to keep her coverage she will need to go through the conversion process.
Does term insurance have a cash value?
No, term insurance does not accrue cash value.
Optional life insurance may require an "EOI" or evidence of insurability. What is an EOI and why do we need it?
EOI is proof that the policyholder is in good enough health to be eligible for benefits. We request this for optional insurance so that someone who is gravely ill cant take out insurance immediately before they pass.
Paul Smith, the policyholder calls in and advises that his spouse and child have passed and he wants to claim the life insurance that he had taken out on them through his employer. He tells you that he had $250k coverage on his wife and $100k on his minor son. What is wrong with the information that he provided?
The values are too high. Dependent coverage is usually smaller amounts with child coverage never exceeding $25k.
Name a document a claim examiner might request from the beneficiary of an AD&D policy that would not be required for a basic or optional life policy.
Autopsy, police report, toxicology, HIPPA auth, medical records, investigating agency. Since AD&D only pays out in specific circumstances the claim examiner may need these documents to determine if the accident falls within the policy requirements.
Samuel Johnson calls in and advises that he has been diagnosed with pancreatic cancer and only has 3 months left to live. He was told by his employer that he may be able to access his life insurance policy early. What is the policy feature called?
Accelerated Benefit Option/Living Benefit Option
ABO/LBO
Would a Basic Life policy pay out in the event of suicide?
Yes, basic life generally pays out even if the policyholder commits suicide. (Some employers may disallow this on a policy by policy basis)
This type of policy is usually offered to executive members of a company. It includes a side fund with investment options chosen by the policyholder. This type of policy is usually associated with high dollar value claims.
Group VARIABLE Universal Life
Who is always the beneficiary on a dependent policy?
The policyholder/employee. It is coverage they pay for on a family member.
Provide a reason that would cause Prudential NOT to pay out on accidental policy.
Natural death (caused by illness), suicide, felonious activity, illegal overdose, very extreme sports (think base jumping not snowboarding).
A caller provides you a claim number and you notice on the branch description that the policy is a "Port" or "Portability" policy. What does this mean and would it be handled by our department?
The employee separated from their employer and instead of "converting" their policy into an individual life policy with Prudential, they chose to keep the same values and features chosen by their former employer. You WOULD handle this call (assuming someone passed).
You are speaking with the beneficiary on a policy. They tell you they are reviewing their deceased father's paperwork and that the Prudential life insurance is listed at $30k. He is frustrated because Pru only paid him $22k. You notice that the father was 74 at the time of his passing. What is likely going on in this scenario?
The policy has gone through age based reductions. Beginning at age 65 the value of the policy decreases each year going forward.
What is the benefit of a group universal life policy? Why would you choose GUL over basic life?
The side-fund can be contributed to freely and maintains the "non-taxable" status of life insurance.
$10k. A child can only be covered under one parent if they both work for the same employer.
Prudential always pays the basic life insurance first. Once basic is paid out the claim is referred to a claim examiner that specializes in AD&D coverage.
This policy feature, sometimes called widow/widower benefits, pays out in small increments rather than a lump sum. The payment is sent to Pru Annuties to issue monthly or quarterly benefits rather than being paid to the beneficiary directly by the claims department.
Survivor Income Benefit-SIB