Life Insurance
What is Group Life Insurance?
Life insurance is a benefit to your family or other designated beneficiaries in the event of your death. The standard coverage for RCA ministers serving a congregation is $175,000 in term life insurance paid by their employer. If enrolled in Life Insurance through the RBA, there is also a $75,000 option for coverage. Additional life insurance for a spouse and children can be purchased through the plan as well.
Why Life Insurance is important
Life insurance offers you peace of mind, so you know your loved ones are financially protected against a sudden loss of income when you pass away. At a minimum, pastors receive group life and accidental death and dismemberment (AD&D) insurance, paid by the employer.
Let’s look at an example of how life insurance can make a difference.
When Rev. Hayes passed away, it shook her community. The news was so unexpected, as she was a healthy 42 year old minister in good health. She was hit by a drunk driver, and shortly after died from injuries sustained in the accident.
Many were concerned that her family wouldn’t be able to make ends meet. Because she was insuranced in the group life insurance plan administered by BOBS, her husband and three children weathered the storm after the loss. Her family received $350,000 (both the basic life insurance amount plus the Accidental Death and Dismemberment amount). They could cover funeral costs, pay off their mortgage, and still had money leftover to supplement daily living expenses.
Group Life Insurance is a critical benefit that allows the RCA to care for both the minister and their family. Even if the benefit is never used, the knowledge that it is there gives each member of the household peace of mind and a sense of security. Beginning January 1, 2022, Supplement D Pastors (ministers ordained outside of the RCA excluding the CRC, ELCA, PCUSA and UCC) will be eligible to participate in group life and LTD through BOBS.
Beginning January 1, 2022, Supplement D Pastors (ministers ordained outside of the RCA excluding the CRC, ELCA, PCUSA and UCC) will be eligible to participate in group life and LTD through BOBS.
Summary of Group Life Insurance Benefits
- Note that employer-paid life insurance coverage over $50,000 is a taxable benefit to you, the employee.
- $175,000 is the standard amount for all participants.
- This is a term insurance policy – coverage decreases by 50% at age 70.
- There is a standard premium rate for all participants.
- The designated beneficiary receives the benefit upon death of the insured.
- There is an additional $175,000 benefit in the case of accidental death. Please complete the beneficiary form if you have no done so.
Summary of Voluntary Life Insurance Benefits
- If you want more than the $175,000, you can buy more.
- Coverage decreases by 50% at age 70 (for spouse as well).
- This is term Insurance.
- You may purchase anywhere from $10,000 to $500,000 in life insurance coverage as the primary insured.
- Premiums for voluntary life insurance are according to the age of the insured and the coverage amount selected.
- The maximum available to purchase is five times the salary of the primary insured, or $500,000, whichever is less.
- You may purchase voluntary life insurance for your spouse up to $250,000.
- You may purchase voluntary life insurance for your children up to $10,000 per child.
- Coverage ends when the primary insured terminates employment.
- If the primary insured terminates their voluntary coverage, the spouse and child coverage is automatically terminated.
What happens to my life insurance if I am no longer working?
Ministers without charge can continue to be covered by group life for 90 days after their last day of work. Their most recent employer is required to pay the premiums for this period.
You may continue your life insurance directly with Lincoln by converting your insurance (changing your group term life to an individual whole life policy) or porting it (changing from the Board of Benefits Services’ group term life to Lincoln’s group term life). This must be done within 31 days of your retirement date or last day worked.
One thing to keep in mind when continuing your insurance is that your rates will increase. If you are converting your insurance, your new premium will be based upon the amount of your insurance policy and Lincoln’s rate for your age. If you are porting your insurance, your new premium will be based upon the amount of your insurance policy and Lincoln’s group rate.
Learn more about porting or converting your coverage.
For more information, contact Cineca Anthony.
Are you an employer?
Learn about the required insurance benefits and exceptions
Have a question?
We are here to help!
Contact Cineca
Board of Benefits Services
475 Riverside Drive, Suite 1606
New York, NY 10115
retirement@rca.org
866-221-5480
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