Alumni/ae, students, faculty and staff of sponsoring alumni/ae associations, and their eligible family members (spouses, domestic partners, parents, children, and siblings) may apply—even if you do not. Each must be at least age 18 but under 75 for 10-year term (and under 65 for 20-year term) when insurance begins and have a permanent home address in the United States. Coverage is also available for minor children when a parent is insured.*

*In NY, only alumni/ae, their spouses and their domestic partners may apply.

1. 10- or 20-Year Period. You may first be insured for 10 or 20 years. Near the end of your initial term, you may request coverage for another 10 or 20 years. To qualify, you submit new evidence of your insurability each time you request a new 10- or 20-Year Period.
   You may apply for this term insurance, 10 or 20 years at a time, until age 65 for 20 year term, or until age 75 for 10 year term, which means that coverage in a final 10- or 20-Year Period may continue until as late as age 85.
2. Extended Period. If you do not qualify for a new 10- or 20-Year Period, your coverage automatically moves to the Extended Period, regardless of your health. You are guaranteed the right to continue this term insurance until age 75. (See During the Extended Period—Term Insurance under the “What are the premiums” question for further details.)
3. Lifetime Option. When your term insurance concludes at age 75 or later, regardless of your health, you may convert your coverage to permanent insurance.

Note: Many group insurance plans allow several entities to cancel coverage, e.g., employer, association, or insurance company. Your Life for Life coverage cannot be cancelled by anyone except you as long as the Collegiate Alumni Trust continues the policy.

• Minimum: $100,000
• Maximum: $2 million (in $1,000 increments) (For lower or higher amounts, call about other plans)
• Minor children: $10,000 per child

You have two options:

1. Automatic Benefit Increases

   ABI's set this plan apart and are reason alone to apply. Chances are you will not find ABIs in other group or individual policies.

   During each of the first 10 years, your insurance amount can automatically increase by 10% to help meet mounting needs. That allows your initial coverage to double gradually over 10 years, subject to the plan maximum of $2 million…even if your health deteriorates.

   To receive each increase, you must be under age 60 and able to perform normal activities as defined in your Certificate of Insurance. There is no extra paperwork, as you need not reapply or requalify. Your total premium increases annually to reflect your increased insurance. You may decline ABIs at any time, but once declined, they cannot be resumed.

2. Requesting an increase.

   If Automatic Benefit Increases do not provide enough total coverage to meet your needs, you may apply for more insurance at any time, subject to the $2 million plan maximum.

You may reduce your insurance through a simple signed request. Your coverage and premium are then adjusted. While you receive no further Automatic Benefit increases, other aspects of your coverage remain unchanged.

Your insurance is not reduced simply because you get older. That way you maintain control of your coverage amount.

A Living Benefit enables an insured person who is diagnosed with a terminal illness, and has a life expectancy of 24 months or less, to request that up to 80% of the insurance amount be paid while he or she is still living (minimum $10,000; maximum $1 million). The remainder continues as life insurance, for which a reduced premium is payable.

A Living Benefit payment is not taxable under current U.S. federal law. However, receipt of Living Benefits (technically “Accelerated Death Benefits”) may affect eligibility for public assistance programs. Consult an advisor for your own situation.¹

¹The Accelerated Death Benefits are intended to qualify for favorable federal tax treatment, in which case the benefits will not be subject to federal taxation. This information was written as a supplement to the marketing of life insurance products. Tax laws relating to accelerated benefits are complex and limitations may apply. You are advised to consult with and rely on an independent tax advisor about your own particular circumstances. Receipt of Accelerated Death Benefits may affect your eligibility, or that of your spouse or your family, for public assistance programs such as medical assistance (Medicaid), Temporary Assistance to Needy Families (TANF), Supplementary Social Security Income (SSI) and drug assistance programs. You are advised to consult with social service agencies concerning the effect that receipt of Accelerated Death Benefits will have on public assistance eligibility for you, your spouse or your family.

During a 10- or 20-Year Period — Term Insurance. Your premium is based on your sex, and your age and health when coverage begins, and it increases each time you enter a new five-year age bracket. Lower rates apply to higher insurance amounts. Slightly higher rates apply to Automatic Benefit Increases.

Unlike other 10-or 20-year term insurance, these premiums are not level for 10 or 20 years. Instead, premiums start lower and increase as you enter new five-year age brackets, providing you with more flexibility.

For example, if you keep your coverage for 10 or 20 years, your total premium may end up being about the same as if your premium had been level. Yes, your premium increases when you enter a new age bracket, but you may still end up paying less if you decide to reduce or end your coverage before your 10- or 20-Year Period is over.

Imagine you no longer need coverage after six years. In that case, you would most likely have paid less total premium than for similar insurance whose premium remains level for all 10 or 20 years.

Historically, most applicants have qualified for Preferred Plus or Preferred (both for nonsmokers only), or Preferred Smoker or Standard Smoker, depending on the underwriting standards they meet. Other premiums are available for nonsmokers who don’t meet the standards for Preferred Plus or Preferred premiums. You qualify as a nonsmoker is you have not used tobacco or nicotine in the last five years.

During the Extended Period — Term Insurance. Your premium is first determined by your sex and your age when you enter the Extended Period, and then it increases annually. These premiums are higher, sometimes notably so, than if you were insured for another 10- or 20-Year Period, but the mere availability of Extended-Period coverage can provide desirable protection, as it is available even if you have become uninsurable.

During the Lifetime Option — Permanent Insurance. Your premium is based on your age and risk class when you convert.

Premium rates for term insurance under this plan are subject to change by the insurer, but only for everyone of the same age, gender, and premium class. Once term insurance ends, if you decide to purchase permanent insurance, your premium for permanent insurance is guaranteed not to increase for the rest of your life.

Most Life for Life approvals are for Preferred Plus rates, which are the lowest. A Preferred Plus rating is typically assigned if you are in excellent health with a normal height-to-weight ratio, and have a favorable personal health and family history.

Preferred rates are also associated with very good health, but certain factors indicate you pose a slightly higher risk than someone who qualifies for Preferred Plus rates.