Family Protection Plans – Individual and Group Term Life Insurance

Nearly 85% of Americans say most people need life insurance, yet only 59% have coverage and a staggering 33% say they don’t have enough life insurance, including one-fourth who already have life insurance coverage.* Nobody wants to be a statistic – especially during a period of grief. That’s why 5Star Life Insurance Company developed its FPP policy – to ensure your employees and their loved ones are covered during a period of loss.

EMPLOYEE BENEFITS:

Terminal Illness

This plan pays the insured 30% (25% in CT and MI) of the 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 (24 months in IL).

Customizable

Your employees choose the level of benefit that best meets the needs of their families.

Portable

Coverage continues with no loss of benefits or increase in cost should your employee leave their job after the first premium is paid, in which case 5Star Life will simply bill the employee directly.

Family Coverage

Spouse coverage is available even if your employee doesn’t participate.

Coverage for financially dependent children:

  • Individual product: Ages 14 days to 23 years old, even if adult does not elect coverage.
  • Group product: Ages 14 days to 19 years old, 26 if a full-time student is under a rider on either adult policy.

Convenience

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

Protection You Can Count On

Within one business day of notification, payment of 50% of coverage or $10,000 whichever is less is mailed to the beneficiary, unless the death is within the two-year contestability period and/or under investigation. This coverage has no war or terrorism exclusions.


Riders

Quality of Life Rider

The Qualify of Life Rider accelerates 4% of the death benefit on a monthly basis, up to 75% of benefit, and is payable directly to the employee on a tax-favored** basis for the following:

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

Benefit can be selected up to age 65 with coverage remaining in place until age 121 (not available in CA).

Automatic Increase Rider (FPPi Only)

The Automatic Increase Rider (AIR) 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

Waiver of Premium Rider (FPPi Only)

The Waiver of Premium rider allows an employee who is totally disabled due to sickness or accidental bodily injury, after a consecutive six-month waiting period, to have his/her premium payments waived for as long as he/she is disabled. Total disability means:

  • During the first 24 months, the employee is unable to perform the substantial and material duties of his/her 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 is unable to perform the substantial and material duties of his/her job and cannot be retrained to perform any other job.

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 riders are 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.


* Scanlon, James T., Terry, Karen R., and Leyes, Maggie, 2018 Insurance Barometer Study, April 4, 2018
**Accelerated benefits may, or may not, be taxable. If so, you or your beneficiary may incur a tax obligation. As with all tax matters, you should consult your personal tax advisor to assess any potential impacts of this benefit.


Underwritten by 5Star Life Insurance Company (a Lincoln, Nebraska company); Administered by NTT Data at 777 Research Drive, Lincoln, NE 68521. Quality of Life Rider NOT available in CA.
FPP Individual product available in all states and some U.S. Territories except: CA, DE, FL, NY, ND. SD.
FPP Group product available in all states and some U.S. Territories except: CA, DE, NY, ND. SD, VI.
Policy form: ICC18-GFPPPOL, ICC19-FPPi
Page updated July 2021


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