Group Term Life Plan Details

Peace of MindLiberty Mutual

Your most valuable asset is your earning power. Can your family get along without your income?

Will they find the funds to pay the mortgage, taxes, car payments, and educational expenses? For your peace of mind, The Trust recommends Group Term Life insurance. Use the quick links below or scroll down for details.

How much life insurance do I need?

Life insurance needs vary depending upon your situation. But one thing is clear, it takes a substantial amount of insurance to replace your current earnings, and even more if future earnings potential is taken into account.

We suggest that if you have a young family to protect, you ought to have death benefits available equal to between 6 and 10 times earnings in order to replace your annual income. The interest earnings on a lump sum equal to this amount, together with family income benefits from Social Security, would replace the majority of your income while leaving the lump sum intact for later use.

Here's how it works

Using the Worksheet you can estimate your current need for additional life insurance. For instance, if your annual earnings amount to $50,000 a year you'll need death benefits of a minimum of $300,000. Let's say that you already have existing death benefits equal to $150,000. Your application should be for $150,000 of new coverage making the total death benefit $300,000. Applying a conservative interest rate against the proceeds (6%) would produce an annual income of $18,000 a year (while holding the principal intact for later years). This interest income together with an estimated 2 $24,732 from Social Security would replace $42,732 or 85% of your current salary. If you'd like to replace today's salary and potential salary increases you would have earned had you lived, a multiplier of 10 times salary should be used instead of 6 3.

What kind of insurance should I buy?

It makes sense to buy what you need! Term insurance is very cost effective coverage. It provides pure death protection without combining the insurance with elements of savings. Term insurance is therefore a good choice for those who have other means of savings at their disposal such as through their pension, 401(k) plan or tax sheltered annuity.

What does it cost to buy the level of coverage I need?

You'll be surprised how little it costs to protect your family's financial well-being! For instance if you are age 35, $250,000 of Trust Group Term Life insurance costs just $243.00 a year! Group rates are shown for other ages and policy sizes in the brochure and are based upon attained age at time of issue and increase in five-year age brackets.

Who may apply for Trust Group Term Life insurance?

You are eligible to apply if you are a psychologist and are under age 65. Your spouse under age 65 is also eligible and may apply as long as you are insured. Unmarried dependent children under the age of 24 may also apply for $2,000 of coverage.

How much coverage can my family and I apply for?

Pyschologists­ may apply for as much as $1,000,000 of coverage in multiples of $10,000. Minimum policy size is $10,000.

Spouses­ are eligible to apply for as much as $1,000,000 of coverage in multiples of $10,000. Minimum policy size is $10,000.

Children­ $500 from 15 days of age to one year.

Unmarried dependent children age 1-24 $2,000.

Extra plan features at no additional charge

Liberty's Living Benefit ­ This important flexibility allows for the early payment of death benefits from your life insurance coverage if you become terminally ill. If a licensed physician certifies that your life expectancy is 12 months or less, up to 50% of the amount of life insurance selected (up to $100,000) will be payable to you. The amount paid is not discounted for interest due to early payment of the benefit.

Inflation Safeguard ­ This benefit is automatically included when the coverage is purchased. Its purpose is to prevent inflation from eroding the death protection of the coverage. Each November 1, after the initial effective date of coverage, you can purchase 10% of the face amount of insurance in force, providing you exercised this option the previous November 1. The maximum coverage under this option is the lesser of $300,000 or an amount that when added to the basic policy equals a total of $1,000,000. While the option is automatically included, premiums for the additional coverage will be added to your bill.

Waiver of Premium Benefit ­ If you are under age 65 and become totally disabled according to the terms of the certificate, for a period of nine consecutive months your premium payments will be waived. Accidental Death and Dismemberment as well as Inflation Safeguard benefits are suspended during this period.

Accidental Death and Dismemberment (AD&D) optional premium ­ For a relatively small additional premium you or your spouse can purchase this valuable additional protection. In the event of death by accident, AD&D pays an additional death benefit equal to the amount of life insurance selected. AD&D also pays an additional benefit in an amount equal to the life insurance selected in the event of loss of both hands, both feet, sight of both eyes, one hand and one foot, or one foot and the sight of one eye. It will also pay half of the amount of life insurance selected in the event of the loss of one hand, one foot, the sight of one eye, speech, or hearing.

Have any questions? Call Liberty Mutual toll-free at 1-844-228-2480. You may also call The Trust toll-free at 1-800-477-1200.

General Information

How to apply ­ Your acceptance into the plan and all requests for increases are subject to providing satisfactory evidence of insurability except under the Inflation Safeguard Option. It is extremely important that you answer fully the medical history on the application and on all forms submitted. Liberty Mutual relies on your answers and failure to supply complete information may invalidate coverage. You may be requested to take a simple physical exam. This will be paid for by Liberty Mutual if the request is for coverage of $100,000 or more. The insurance will not become effective until the first day of the calendar month following the date the company determines that such evidence is satisfactory.

Premium ­ Annual premium is due each November 1. Semi Annual premiums are due each November 1 and May 1. In the event that you enter the plan on any premium due date other than November 1 or May 1, the premium will be prorated to the next premium due date. Any changes in benefits and/or rates normally occur on the anniversary date of the group policy which is November 1.

Change of beneficiary ­ You may designate a change of beneficiary for your Life Insurance plan at any time by writing the Administrator of the APA Group Insurance Plans at:

Trust Group Insurance Plans
Liberty Mutual Insurance Group
P.O. Box 1525
Dover, NH 03821-1525

When there is a claim ­ Detailed information regarding claims procedures is issued with the certificate.

Plan limitations ­ The Life insurance benefit will be paid for death from any cause except suicide committed within the first two years of coverage.

Accidental Death and Dismemberment coverage excludes:

  • Suicide or any attempt thereat, while sane or insane;
  • Intentionally self-inflicted injury;
  • Disease or sickness, or related medical or surgical treatment;
  • Ptomaines or bacterial infection except through a visible wound accidentally sustained;
  • War or any act of war, declared or undeclared;
  • Drugs that are voluntarily taken, ingested or injected, unless as prescribed or administered by a physician; and
  • Active participation in a riot or committing or attempting to commit an indictable offense.

Termination of Insurance

When coverage ends, your insurance will cease on the earliest of the following dates:

  • The date the master policy held by the Trustees is canceled;
  • The date you fail to make any agreed payment of premium within the 31-day grace period; or
  • The anniversary date of the policy following your 75th birthday.

Dependents' insurance will cease when:

  • The policyholder dies or ceases to be insured;
  • The date the master policy held by the Trustees is canceled;
  • The date you fail to make any agreed payment of premium within the 31-day grace period; or
  • The anniversary date of the policy following your 75th birthday.

Dependents' insurance will cease when:

  • The member dies or ceases to be insured;
  • The date you fail to make any agreed payment within the 31-day grace period;
  • The anniversary date of the policy following the 75th birthday of an insured dependent spouse;
  • A dependent child attains age 24;
  • A dependent child marries; or
  • The marriage of the member terminates.

Administration ­ This plan is underwritten and administered by the Liberty Life Assurance Company of Boston, a member of the Liberty Mutual Group. A Group Life Insurance policy has been issued to the Trustees of The Trust. Each participating psychologist receives a certificate outlining the benefits to which he or she is entitled under the policy. The descriptions here are necessarily brief and are subject to provisions that can only be expressed exactly in the certificates of insurance.

1 American Council of Life Insurance, U.S. Bureau of the Census
2 Represents the maximum family benefit under Social Security for a worker age 40 earning $50,000 a year.
3 Ten times current annual salary is the approximate discounted value (at 7%) of a person's future earnings potential assuming yearly salary increases of 6%.