Why members get a better deal with ADA Term Life
June 04, 2012
By Karen Fox, ADA News staff
Many dentist members find more competitive rates in the ADA Term Life insurance plan, which has been insured by Great-West Life & Annuity Insurance Co. since 1934. The member group plan is renewable on an annual basis, and premiums are based on the favorable mortality results associated with member dentists and low group insurance expense and distribution costs, which often results in a better deal than level premium term life insurance that may cost more in the long run.
Term Life is part of a suite of insurance products that are designed to reduce members’ exposure to risk and help them plan for the future. (For more information, visit insurance.ada.org or call a plan specialist at 1-888-463-4545.) The ADA Term Plus (Universal Life) plan that comes with a policy value account that lets you save on a tax-deferred basis is another competitive option for member dentists that will be the featured topic of a future article.
ADA Term Life insurance is designed exclusively for dentists and their family members and offers special features: chief among them a low rate. One reason is because each year you pay only enough to cover the mortality risk at your current age so you don’t have to overpay for coverage in your younger years. Level premium term insurance plans can suddenly escalate at the end of the term, forcing you to pay more over the long run—especially if you need the coverage longer than you originally planned. With the ADA Term Life insurance plan’s yearly renewable feature, you determine how long you need the coverage and you don’t have to worry about a specific term of years. ADA active, life or retired members may renew their coverage up to age 81.
In addition, the ADA’s group premiums can actually go down—and have done so in the past—to reflect favorable plan experience. The savings is passed on to members through a premium credit. With level premium term insurance, you’re locked in; your premiums can’t go down and favorable plan experience is kept by the insurance carrier.
ADA’s Term Life insurance plan also offers volume discounts that can reduce your premiums an additional 6, 9 or 11 percent; preferred rates for exceptionally healthy dentists; and up to $3 million in coverage plus up to $1 million of additional accidental death coverage.