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FAQs
Management Benefits Fund > Group Universal Life Insurance


What is the Group Universal Life (GUL) Insurance Plan?
Do I have to pay for the coverage?
As an MBF member, am I required to buy life insurance coverage under GUL?
How much life coverage can I purchase?
How much life coverage is available for my dependents?
To receive coverage, do I have to take a medical/physical exam?
Does the Group Universal Life Insurance Plan offer any other benefit besides life insurance?
Will I lose coverage when I am no longer a member of the MBF?



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

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Do I have to pay for the coverage?
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.

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As an MBF member, am I required to buy life insurance coverage under GUL?
No. Participation in this Plan is optional.

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How much life coverage can I purchase?
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.

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How much life coverage is available for my dependents?
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 19 years, or up to age 26) in the amount of $10,000, $15,000 or $20,000 for $0.0295 per month per $1,000.

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To receive coverage, do I have to take a medical/physical exam?
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, a medical questionnaire has to be completed and a para-medical exam may be required.

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Does the Group Universal Life Insurance Plan offer any other benefit besides life insurance?
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.

See the Benefits Booklet for more information (PDF)

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

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Spotlight

Employee Assistance Programs (EAPs)
EAPs are staffed by professional counselors who can help employees and their eligible dependents handle problems in areas such as stress, alcoholism, drug abuse, mental health, and family difficulties.

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Quick Links

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