Population: New or Prospective Non-Represented
Life Insurance for Your Loved Ones
Group Universal/Group Variable Universal Life Insurance (GUL/GVUL) provides additional income for your survivors after your death and allows you to deposit money in a Tax Deferred Cash Accumulation Fund to save for a specific purpose. PSEG provides group term life insurance for you. But, GUL/GVUL provides an additional benefit and coverage for your spouse and children.
When deciding if GUL/GVUL coverage is right for you, you should consider:
- Do you have family who depend on you for financial support?
- Does your spouse have insurance coverage? Does he or she have enough coverage?
- Do you have significant debt that your family would be responsible for if you died?
- Do you have a savings goal that you can meet through the Tax Deferred Cash Accumulation Fund?
About Your GUL/GVUL Insurance Plan
The GUL/GVUL plan lets you supplement the amount of group term life insurance you choose. You choose the level of coverage you need (up to five times your pay, with a maximum of $1,500,000). You also can purchase GUL/GVUL coverage for your spouse and/or your children.
You can make contributions to the Tax Deferred Cash Accumulation Fund through the GUL/GVUL plan and use this fund to:
- Continue coverage—you can continue coverage until age 95 by paying premiums using the amount in the Tax Deferred Cash Accumulation Fund until the fund is depleted or by paying premiums directly to MetLife
- Elect paid-up coverage—you can elect a fixed amount of paid-up insurance of at least $10,000. Paid-up insurance allows you to ensure or "lock-in" a certain amount of insurance coverage for the future. By using your fund, this insurance is paid for in full, and you never pay another premium.
- Elect an annuity—if you have at least $10,000 in the fund, you can choose to receive regular annuity payments.
- Surrender coverage—at any time, you can end your GUL/GVUL coverage and receive the value of you Tax Deferred Cash Accumulation Fund. The fund value is equal to the money in the fund minus any outstanding loan and loan interest.
You can borrow or withdraw the money in the fund at any time for any purpose. Interest and earnings on contributions to this fund are tax-deferred. You and your spouse or eligible same-sex domestic partner/civil union can maintain separate accounts.
Highlights:
- Coverage of up to five times base pay;
- You can purchase additional coverage as a Voluntary Accidental Death Benefit;
- Coverage for your spouse of up to $100,000;
- Coverage for your children of $5,000 or $10,000 each;
- Additional, optional contributions to a Tax Deferred Cash Accumulation Fund based on coverage premiums. Separate accounts are available for you and your spouse or eligible same-sex domestic partner/civil union; and
- Coverage may be continued when you leave the Company.
The chart below highlights key similarities and differences between GUL and GVUL to help you determine which product is best for you. You'll receive more information when you're eligible to enroll or call 1-800-571-0400 and follow the voice recognition prompts to speak with a Benefits Express representative to request information.
Similarities of GUL and GVUL
- Life Insurance Protection
- Portability
- Payroll Deduction
- Tax-deferral
- Flexibility
- Federal Income-Tax-Free Death Benefit
- Convenient Access to Cash Values
- Option to Earn a Guaranteed Interest Rate
- Rates for the Cost of Insurance
- Coverage for Spouse and Children
- Options at Retirement
Differences of GUL and GVUL
GUL
- All cash fund contributions earn a fixed interest rate that is guaranteed by MetLife never to fall below a 4% minimum.
- Low risk, safety of principal
- No expense fee
- You decide your contribution amount
GVUL
- Contributions can be allocated to the Fixed Account, Separate Account or both. Earn various returns on contributions allocated to the Separate Account. Investigating in separate accounts will incur additional charges.
- You select the level of risk with which you're most comfortable
- $2.00 monthly administrative charge
- Management fees and expenses associated with investment options
- Recommended $25.00 minimum contribution amount in order to maximize the value of investing
- 45-day free-look period*
*GVUL participants have a 45-day free-look period. If you decide within that 45-day period that you do not want GVUL coverage, you can cancel your coverage without penalty.
Before choosing a coverage option, consider the cost of each option.
Note: Same-sex domestic partner/civil unions are not eligible for spousal coverage through GUL/GVUL.