Life insurance is administered through the MBA and coverage is provided by Voya Financial. Voya is a leading provider for Group Term Life coverage.
Why enroll in MBA Term Life Plans?
A.M. Best rates Voya Financial as "Excellent"
- Rates may be significantly lower as all participating banks are pooled together
- Through Voya we are able to provide your employees an important part of their financial plan. Life insurance provides a valuable death benefit to beneficiaries upon an employee's death. Beneficiaries are able to use benefits to replace lost income to help pay off debts or other expenses. Term Life often provides the most coverage for your premium dollar for set periods of time.
Employees must work a minimum of 20 hours per week or a higher hourly requirement as adopted by the participating MBA member bank. Eligible employees may be enrolled on the date they commence working the required hours or after satisfying a waiting period adopted by the employer. MBA must be notified by the employer of any special service requirement. The completion and submission of enrollments within 31 days of the employee's eligibility is important to avoid any requirement for medical evidence of insurability.
Basic, Optional and Dependent Life Coverage
- Allows participating banks to choose Basic Life coverage levels for their employees based on employee classification. A variety of flat plan and/or earnings based options are available. Guaranteed Basic life coverage of up to $200,000 is available for timely enrollees. Maximum coverage of up to $500,000 is available.
- Participating banks may allow employees the option to purchase additional employee life coverage in $10,000 increments. Guaranteed Optional life coverage of up to $200,000 is available for timely enrollees. Maximum level of coverage available under the plan is $500,000.
- The bank may allow the employees to select the spouse/child coverage amounts. Or, the participating bank may select one of three Dependent Life options if the bank pays 100% of the premium.
Taxation of Group Term Life Insurance
As we approach the end of the calendar year, we receive inquiries regarding the federal income tax aspects of group life programs. Information can be found on the IRS website. Please click here for specific information regarding group term life insurance. Consult your own attorney or accountant concerning any specific questions.
If you would like us to prepare a quotation for your bank or have questions, please contact Barb Markus directly at (952) 857-2625.