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FAQs - Group Universal Life (GUL) Insurance


What is the Group Universal Life (GUL) Insurance Plan? View the Answer

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This Plan offers both life insurance coverage and a cash accumulation fund to members and their eligible dependents at affordable group rates. Active members under age 70 are also eligible to receive Accidental Death & Dismemberment Insurance coverage.

Do I have to pay for the coverage?View the Answer

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This Plan is entirely funded by member contributions. If you are an active member and want coverage under GUL, premiums can be automatically deducted from your paycheck. 

As an MBF member, am I required to buy life insurance coverage under GUL? View the Answer

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No.  Participation in this Plan is optional.

How much life insurance can I purchase? View the Answer

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Coverage for a member is available in units of $10,000 up to $100,000 or as a multiple (1x, 2x, 3x, 4x, 5x, 6x, 7x or 8x) of basic salary. The maximum coverage is $1,000,000 or 8 times your basic salary, whichever is less.

How can I increase or decrease my GUL coverage?View the Answer

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For active members, you must complete MBF Form 1060 to make changes to your coverage. Please obtain the MBF Form 1060 from your Agency HR office, complete it in its entirety and return it your Agency HR office for certification. Your Agency HR will submit your Form 1060 to MBF. Once MBF receives your completed Form 1060, Prudential will be notified of your change in coverage. This is subject to medical underwriting by Prudential.

For retired members, you cannot increase your coverage amount. If you would like to decrease your coverage, you must complete MBF Form 1060 in its entirety, which can be obtained by contacting MBF at 212-306-7290, and return it to the MBF office. Once MBF receives your completed Form 1060, Prudential will be notified of your change in coverage. Medical Underwriting is not required to decrease your coverage amount.

Can I purchase GUL coverage solely for my dependents? View the Answer

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No, you must also purchase coverage for yourself if you are electing coverage for your dependent(s).

How much life insurance is available for my dependents? View the Answer

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You can buy coverage for your spouse/domestic partner in units of $10,000 up to $100,000. Coverage is also available for $120,000, $150,000, $200,000 and $250,000.

You can also purchase coverage for child(ren) (ages 15 days to age 26 if unmarried) in the amount of $10,000, $15,000 or $20,000. Please refer to the MBF booklet section for rate information.

To receive coverage, do I need to take a medical/physical exam? View the Answer

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No medical/physical exam is required during the initial eligibility period if you purchase coverage for yourself for the lesser of three times basic salary or $500,000, or for up to $30,000 of coverage for a spouse/domestic partner who is less than 64 years old.

This initial eligibility period is within 31 days of the effective date of your Fund membership. In all other cases, you must provide medical evidence of good health.

How do I change my beneficiary(ies)?View the Answer

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For active members, you must complete MBF Form 1060 in its entirety to make changes to your beneficiary(ies). Please obtain the MBF Form 1060 from your Agency HR office, complete it in its entirety and return it your Agency HR office for certification. Your Agency HR will submit your Form 1060 to MBF. Once MBF receives your completed Form 1060, Prudential will be notified of your change in beneficiary(ies).

For retired members who would like to change their beneficiary(ies), you must complete MBF Form 1060 in its entirety, which can be obtained by contacting MBF at 212-306-7290, and return it to the MBF office. Once MBF receives your completed Form 1060, Prudential will be notified of your change in beneficiary(ies).

Does the GUL Insurance Plan offer any other benefit besides life insurance?View the Answer

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Yes. There is a Cash Accumulation Fund which enables you to put aside money for yourself or your spouse/domestic partner that earns tax deferred interest (guaranteed not to be less than 4%). In addition, you may borrow or withdraw funds from your Cash Accumulation Fund Account at any time. See the Benefits Booklet for details. Please note that children are not eligible for this provision.

If your cash contribution exceeds certain limits and your GUL coverage becomes a "Modified Endowment Contract," less favorable tax rules and in some cases penalties apply for lifetime distributions such as loans and withdrawals. Please consult your tax advisor for further information.

Will I lose coverage when I am no longer a member of MBF?View the Answer

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A major advantage of this Plan is that it provides you lifelong, portable coverage for as long as the group contract in is force. Upon retirement or termination of Fund membership, the insurance carrier will bill you directly at home every quarter. Thus, you can continue to be covered under this Plan for as long as you like, provided you pay the premiums.

What will happen to my coverage once I retire?View the Answer

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You may continue your GUL coverage when you retire from MBF on a direct bill basis, but your premiums will be at the retiree group rate. Please refer to the GUL section of the MBF homepage for information on retiree group rates.

Will I lose coverage when I terminate from City employment or am no longer eligible for MBF benefits?View the Answer

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A major advantage of this Plan is that it provides you lifelong, portable coverage. Upon termination of City employment or Fund membership, the insurance carrier will bill you directly at home. Thus, you can continue to be covered for as long as you like, provided you pay the premiums at the portable rate. Please contact Prudential at 1-800-562-9874 for information on rates.

I am 60 years or older with GUL coverage. How do I know if GUL is the right coverage for me?View the Answer

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If you would like to discuss your insurance options, including GUL, and are an MBF member over 60 years of age, please contact one of the Deferred Compensation Plan’s Certified Financial Planners at 212-306-5050 to review your life insurance options.

 


 

Download this section of the Fund booklet