Level Premium Term (LPT) Life Insurance Plan
Other Provisions
Cost of Insurance - is met from contributions to the Trust. Required contributions for participation in the life insurance coverage under the Level Premium Term Insurance Plan are set forth in the material provided.
Beneficiary
The life insurance proceeds are paid to the designated beneficiary(ies). If there is more than one beneficiary, proceeds may be divided into equal or unequal shares. The proceeds are usually paid in a single sum, but as an alternate method of payment, a periodic income may be elected, with equal monthly installments of all or part of the proceeds (with interest) paid over a fixed period of time. Several other modes of settlement also are available. One of these may be selected by mutual agreement with Prudential.
To change your beneficiary(ies), or change your legal name, please use the Change of Name/Beneficiary Form.
When the Life Insurance Terminates - Termination will occur for both member and spouse coverage: a) at such time the participant is not a member of the American Institute of Certified Public Accountants, b) if the Group Policy terminates, or c) if the member withdraws from the Plan by so electing or by failure to pay the required contributions to the Trust.
Dependent Child Coverage under the LPT Insurance Plan will terminate under any of the following conditions: the Insurance Plan coverage terminates for the covered CPA; the child no longer qualifies as an eligible dependent; the Level Premium Term Life Insurance Plan itself is terminated; or the provision in the policy for the coverage terminates. If the CPA is deceased, the Dependent Child Coverage may be continued with the Spouse Level Premium Term Insurance or with Spouse Life Insurance, provided the Spouse coverage is in effect at the time of the CPA's death, subject to the same termination provisions shown above.
Conversion Privilege
If the LPT coverage terminates because the CPA is no longer a member of the AICPA or other qualifying organization that may apply towards eligibility, the member or spouse has the privilege of converting the amount terminated to a Prudential individual life insurance policy. The member or spouse can get this life insurance protection without taking a medical examination or answering health questions. To convert the member or spouse must apply for the individual contract and pay the first premium according to the following rules: If the member or spouse has been given written notice of the conversion privilege within 15 days before or after he/she ceases to be insured, he or she must apply for the individual contract and pay the first premium within 31 days after ceasing the insurance coverage; or if he/she has been given written notice of the conversion privilege more than 15 days but less than 90 days after he/she ceases to be insured, he/she must apply for the individual contract and pay the first premium within 45 days after written notice has been given; if he/she have not received written notice of the conversion privilege within 90 days after the insurance ceases, the time allowed for exercising the privilege ends at the end of 90 days. If the insurance ends because all of the insurance ends for the participant's class, the total amount of the individual insurance which is obtained through this privilege will not exceed the total amount of insurance that was terminated for the participant under the Group Contract reduced by the amount of group life insurance from any carrier for which he/she becomes eligible within 45 days. A death benefit is payable under the Group Contract, even if the covered member or spouse did not apply for conversion, if the covered member or spouse dies within 31 days of the termination and while still entitled to convert according to the rules described herein. If the insurance for a dependent child of an LPT participant terminates for any of the reasons described, all or part of the dependent child coverage may be converted to an individual life insurance policy. No evidence of insurability will be required. For plans covering Minnesota residents, special rules apply for conversions.
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