Peace of Mind
valuable asset is your earning power. Can your family get along without your
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
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
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 member of the American
Psychological Association 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?
APA Members may apply for as much as $1,000,000 of coverage
in multiples of $10,000. Minimum policy size is $10,000
are eligible to apply for as much as $1,000,000 of coverage
in multiples of $10,000. Minimum policy size is $10,000.
$500 from 15 days of age to one year.
dependent children age 1-24 $2,000.
Extra Plan Features At No Additional Charge
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.
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.
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
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
1-888-287-8494, option 3. You may also call The Trust toll-free at 1-800-477-1200.
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.
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
APA 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;
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
Termination of insurance
When Coverage Ends. Your insurance will cease on the earliest of the following dates:
Dependents' insurance will cease when:
The date the master policy held by the Trustees is canceled;
The date you cease to be a member in good standing of the APA;
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.
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 APA Insurance Trust. It is the only
Life Insurance Program endorsed by the American Psychological
Association. Each participating member receives a certificate
outlining the benefits to which he or she is entitled under
The descriptions here are necessarily brief and are subject to
provisions that can only be expressed exactly in the
certificates of insurance.
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
- A dependent child attains age 24;
A dependent child marries; or
The marriage of the member terminates.
1American Council of Life Insurance, U.S. Bureau of the Census
2Represents the maximum family benefit under
Social Security for a worker age 40 earning $50,000 a year.
3Ten times current annual salary is the
approximate discounted value (at 7%) of a person's future
earnings potential assuming yearly salary increases of 6%.