Family Protection Plan with Terminal Illness

Sadly, 85% of Americans say most people need life insurance, yet only 62% have coverage and a staggering 33% say they don’t have enough life insurance, including one-fourth who already have a balance. Nobody wants to be a statistic – especially during a period of grief. That’s why 5Star Life developed its voluntary benefit Terminal Illness Family Protection plan policy – to ensure your clients and their loved ones are covered during a period of loss.

CLIENT BENEFITS:

Affordability

Your clients choose the level of benefit that best meets the needs of their family.

Portability

Coverage with no loss of benefits or increase in cost should your client leave their employer after the first premium is paid, in which case 5Star Life will simply bill your client directly. Coverage can never be cancelled by us or the employer unless your client stops paying premiums.

Family Protection

Individual policies can be purchased on the employee, their spouse, children, and grandchildren.

Children & Grandchildren Plan

Policies can also be purchased for children and grandchildren from ages 14 days through 23 years for $1.15/week for a $10,000 policy or $2.30/week for a $20,000 policy.

Convenience

Premiums are taken care of simply and easily through payroll deductions.

Easy Application Process

This insurance does not require a medical exam or blood profile. Eligibility for coverage is based on a few simple health questions on the application.

Emergency Burial Benefit

Within 24 hours after receiving notice of an insured’s death, an emergency death benefit of the lesser of 50% of the coverage amount, or $10,000 will be mailed to the insured’s beneficiary, unless the death is within the two-year contestability period and/or under investigation.

Terminal Illness

This plan pays the insured 30% (25% in Connecticut & Michigan) of the policy coverage amount in a lump sum upon the occurrence of a terminal condition that will result in a limited life span of less than 12 months.

Riders

Automatic Increase Rider

The Automatic Increase Rider allows an employee or spouse to incrementally purchase additional coverage to their existing policy for the first 5 consecutive years (available for both employee and spouse coverage), on the policy anniversary date, for only $1 additional premium per week. There is no cost for including this rider, which is only available during initial enrollment, and systematic  increases will begin on the first policy anniversary date.

  • Each annual increase in coverage is Guaranteed Issue, regardless of the insured’s health or occupation
  • Benefit is locked-in at the time of policy issue
  • Annually increased benefits are payable at first year compensation levels
  • Benefit growth in step with increasing cost of living expenses

Quality of Life Rider

This Qualify of Life Rider accelerates a portion of an employees death benefit on a monthly basis – 3% or 4% – each month as scheduled by an employer at the group level, and payable directly to the employee on a tax favored basis. An employee can receive up to 75% of the current face amount of the life benefit, following a diagnosis of either a chronic illness or cognitive impairment that requires substantial assistance. Benefits are paid for the following:

  • Permanent inability to perform at least two of the six Activities of Daily Living (ADLs) without substantial assistance, or
  • A permanent severe cognitive impairment, such as dementia, Alzheimer’s disease and other forms of senility requiring substantial supervision.

Waiver of Premium Rider

The Waiver of Premium rider allows customers who develop long term disabilities to temporarily discontinue paying premiums for the duration of the disability and keep their coverage, following an elimination period of 180 days of total disability. Total disability under this rider is defined as:

  • Inability to perform the substantial and material duties of your job, or
  • Total and permanent loss of sight of both eyes, hearing in both ears, speech or the use of both hands, both feet or one hand and one foot, and
  • After 24 months, the insured cannot be retrained to perform any other job.

Please note that riders are available only on the FPP-Terminal Illness plan. The AIR and Waiver of Premium riders are not able to be combined on the same policy. Both Quality of Life and Waiver of premium is only available for selection at the group level, meaning all participating employees would have this coverage embedded in their policy, per the election made by the group.  


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