32 POSTAL RECORD I MAY 2012 NATIONAL ASSOCIATION OF LETTER CARRIERS
MBA 10-Year Renewable
and Convertible Term Life
MYRA WARREN
DIRECTOR OF LIFE INSURANCE
T
he United States Letter Carriers Mutual Benefit
Association (MBA) is proud to announce an
insurance plan for NALC members, MBA 10-
Year Renewable and Convertible Term Life
insurance.
The MBA 10-Year Renewable and Convertible Term
Life is a term life insurance plan that covers the life of one
insured. In the event of the death of the insured, the MBA
will pay the face value (the amount of life insurance, also
known as the death benefit) to the policy’s designated
beneficiary. The NALC member, when applying for an
MBA 10-Year Renewable and Convertible Term Life
insurance policy, may choose to cover his/her own life or
the lives of his/her spouse, children, grandchildren or
even great-grandchildren. The MBA will insure any one
life up to an amount of $100,000. A policy may be issued
to an insured between the ages of 17 and 79.
The premiums for an MBA 10-Year Renewable and
Convertible Term Life policy are based on the proposed
insured’s age and the amount of life insurance for which
they are applying. Premiums will remain the same for a
10-year period. Premiums may be paid directly to the
MBA office on an annual or monthly basis or they may be
paid by biweekly payroll deduction. Retired NALC mem-
bers may pay premiums directly to the MBA office on an
annual or a monthly basis.
The premiums for the MBA 10-Year Renewable and
Convertible Term Life policy are very reasonably priced.
An NALC member who is currently age 25 can purchase
$100,000 for as little as $6.50 per pay period. The same
amount of life insurance coverage may be purchased by
an NALC member who is age 38 for $9.50 per pay period.
After the initial 10-year period, the policy owner has the
option of renewing the policy for another 10-year period
(at a premium rate for the insured’s current age) or con-
verting the policy to a whole life insurance policy. This
conversion is allowed with no evidence of insurability. The
policy is renewable until the policy anniversary date after
the insured’s 80th birthday. It is convertible to a whole life
plan of insurance until the policy anniversary after the
insured’s 65th birthday.
Each year, the NALC Board of Trustees determines
whether the MBA 10-Year Renewable and Convertible
Term Life plan will share in the divisible surplus accruing
from participating policies. If there is a divisible surplus,
it is called a dividend and is credited to the MBA 10-Year
Renewable and Convertible Term Life policies on the pol-
icy anniversary date. The policy owner has the following
dividend options: a) left on deposit at interest, b) paid in
cash, or c) used to pay premiums on the policy.
The MBA 10-Year Renewable and Convertible Term Life
policies provide for the benefits to be paid to a beneficiary.
It is important that the policy owner review the benefici-
ary designation periodically to make sure that their bene-
ficiaries are accurate. More than one beneficiary may be
named on a policy, and specific allocations may be made.
The MBA allows the policy owner to change the benefici-
ary of a policy at any time prior to the insured’s death. The
policy owner must supply the MBA with the beneficiary’s
name, address, Social Security number and relationship
to the insured.
The MBA 10-Year Renewable and Convertible Term
Life policy is an excellent way to provide a high amount of
insurance coverage for a small amount of money. It allows
an NALC member to provide for his/her family in the
event of unforeseen circumstances.
Please see the insert in this Postal Record for detailed
information and an application for the MBA 10-Year
Renewable and Convertible Term Life Insurance policy.
Special notice: The Mutual Benefit Association is now
licensed to offer our life insurance products and maturity
income products (Traditional IRA, Roth IRA and Non-
Qualified Deferred Annuity) in Florida. If you would like
more information, please contact the MBA office or visit
the MBA Department at nalc.org.
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