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FREQUENT QUESTIONS
1. Why are cultural associations adopting cultural group life insurance plans?
Guaranteed insurance helps build stronger communities. The Cultural Insurance Plan covers all members, including those without perfect health or finances. Burial funds are guaranteed at the time of death, thus minimizing the need to ask for contributions.
2. What is the financial strength of Standard Life Insurance Company?
A Rating (Excellent) --- AM Best Company
A+ Rating (Strong) --- Standard & Poors
AA- Rating (Very Strong) --- Fitch
17,800 employer group plans in force covering 3.8 million lives
3. Have all cultural claims been paid?
Yes, all claims have been paid within 2 or 3 days after Standard Life received completed claim forms and required documentation. Deaths that happen outside the United States require extra time to process because documentation needs to be obtained from the embassy.
4. What benefit levels are available?
The benefit levels available are $10,000, $15,000, $20,000 and $25,000. The group chooses the benefit level, and it is the same for all group members.
5. Why is the benefit level 50% of the long-term plan design during the first year?
This policy design allows the plan to be written without members having to fill out health questionnaires. All active members are insured on a guaranteed issue basis without the requirement of medical underwriting. The plan design safeguards the long-term rate stability for all insured cultural associations.
6. Why are there benefit level reductions at age 65 and age 70?
The benefit level reductions at age 65 and 70 keep the rates affordable. Members over age 65 are able to have some coverage. (A reduced benefit is better than no benefit.) Members who reach age 65 and 70 do receive premium reductions that correspond to their benefit level changes. This policy design is in contrast to employer provided insurance, where employee group life benefits terminate immediately and completely at retirement.
7. How are premiums paid?
The group receives a common billing for all members. Premiums can be paid monthly, quarterly, semi-annually or annually.
8. How is the premium rate determined?
The number of members, average age, male-female ratio and benefit level are the factors that determine the premium rate. Each group receives a quote based on its specific makeup. We have group plans in force with premiums anywhere from $5.00 to $25.00 per month for each participating member.
9. Can our group plan be canceled at any time by Standard Life?
Non-payment of premium by the group is the only reason the plan can be canceled.
10. Will claims by our group increase our premium rate or result in termination of coverage?
Premium rates will not be selectively increased, nor will your group plan be terminated because of one or even multiple claims.
11. Besides Standard Life, do other insurance companies offer this type of coverage to cultural associations?
This is the only plan of its kind in the nation. Standard Life has made a long-term commitment to provide a plan that is specific to, and only for, cultural associations. Uninformed agents sometimes have proposed employer group plans to cultural groups without properly informing the insurers that the proposals were for cultural associations. Insurance companies will void contracts that have been issued under false pretenses.
12. Would it make sense to purchase individual policies instead of group insurance?
There are significant problems in trying to fit individual insurance to a group. Everyone in the group would need to be medically approved by completing health questionnaires. The members most in need coverage, due to age and/or poor health, would most certainly be declined.
13. Do members need to qualify for the Cultural Insurance Plan by answering health questions?
There are no health questions for members who apply for the coverage when it is first offered to them.
14. Can our children be insured?
There is an optional children’s rider that covers all children in the family for one low rate.
15. Can my child be my beneficiary?
Yes; however, if the child is a minor, most states require that the proceeds of a death claim be placed in an interest bearing trust account until the child reaches age 18.
16. Can a member who belongs to multiple cultural associations have insurance coverage with more than one of those associations?
Members can be insured with only one association. Allowing members to carry coverage with more than one group could adversely affect the rate structure for all groups. Members with serious health problems likely would be the first to apply for coverage with more than one group, resulting in unusually high claims experience.
17. Can a member decline coverage and then apply for insurance later?
A member that declines coverage can apply at the next policy anniversary. That member will be required to complete a health questionnaire in order to be approved for coverage by Standard Life.
18. What is the MEDEX Travel Assist plan?
MEDEX Travel Assist is a worldwide assistance program that is given by Standard Life to new and existing cultural associations as bonus coverage. The plan covers a host of services from pre-trip planning to emergency medical evacuations. Each member will receive a MEDEX ID card with an 800 phone number to easily access the services from anywhere in the world. There is no extra premium charged to either the group or the member for this plan.
19. How does our group get the Cultural Insurance Plan started?
A complete census of active members requesting insurance coverage and the first premium are the key elements. (Beneficiary forms can be completed after the policy is issued. The proceeds would be paid to the closest relative according to a line of succession stated in the policy if a member should die before designating a beneficiary). |
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Cultural Group Benefits Company
8441 Wayzata Blvd, Suite 250
Golden Valley, MN 55426
Tel: 763-593-5107
Fax:763-593-5108
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