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    Updated November 13, 2007  
  
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    Updated November 13, 2007  
  
  Topics
  MBA Home
  About the MBA
  MBA Brochures
  MBA Forms
  MBA Membership       Qualifications
  MBA Applications
  Glossary of Terms
  Privacy Policies
       Policy Holder
       HIPAA
  Contact MBA
   
   
   
   
   
   
   
   
   
   
   
   
   
  MBA Insurance Programs
 
Foundation 2 brochure - click for PDF
Prime Protection brochure - click for PDF
Premium Protection brochure - click for PDF
START brochure - click for PDF
PDF (156K)
PDF (335K)
PDF (876K)
PDF (156K)
       
Maturity Income brochure - click for PDF
Hospital Plus brochure - click for PDF
Independence brochure - click for PDF
PDF (161K)
PDF (169K)
PDF (401K)
PDF (435K)
  Insurance plans offered by the MBA are designed to give NALC members and their families the best possible protection for the lowest cost. 
 
 
The MBA brochures are available online in Adobe Acrobat® PDF format. In Windows®, click the link or brochure image to browse the brochure online, right-click and save to download. More information
 
  Life Insurance
 
Foundation 2
 
Foundation 2 brochure - click for PDF

Click on image for brochure

Foundation 2 is a whole life insurance plan that lets you choose from $10,000, $15,000, $25,000 or $50,000 worth of coverage.
Premiums are based on the amount of the policy benefit and your age at the time of purchase. With this plan, premiums remain the same throughout the life of your policy. You may pay Foundation 2 premiums once a year, 11 times a year or biweekly under the payroll deduction plan.*

Foundation 2 also builds up a guaranteed cash value with tax-deferred interest. This cash buildup is available to you at any time—in emergencies, at tuition time or during retirement. You can borrow against your cash buildup and still keep your Foundation 2 plan in force, or you may trade in your policy for the cash value (which you can take as a lump sum or as regular income).

Your cash value will earn a minimum guaranteed rate of 5.5 percent a year; however, the MBA expects all Foundation 2 policies to earn interest at higher rates. Should you decide to borrow against your Foundation 2 policy, the interest rate will be 8 percent or the rate determined by the state in which your policy is issued (whichever is lower).
*Retirees may choose to pay premiums monthly or annually. Sorry, retirees are not eligible to use payroll deductions.
 

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Prime Protection
 
Prime Protection brochure - click for PDF

Click on image for brochure

Prime Protection is a five-year renewable and convertible term policy. In the event of your death, Prime Protection will pay your beneficiaries the full amount of your policy for as long as it's in force. This plan lets you choose coverage of $10,000, $15,000, $25,000 or $50,000.

With Prime Protection, your premium will remain the same until the five-year term has ended. You can renew for another five years of coverage without a medical exam. At each renewal period, your premium increases according to your age. You may continue Prime Protection coverage until age 80.

You can also convert your Prime Protection policy to a whole life policy, such as Foundation 2, without taking a medical exam, if the insured is under the age of 65.* Prime Protection is available for your spouse at the same benefit amounts open to you. Premiums can be paid annually, 11 times a year, or biweekly through payroll deductions.** You may choose to have your dividends paid in cash or left on interest-bearing deposit.
*This feature does not apply if you have been a victim of permanent and total disability, and the policy you seek contains a disability waiver rider. If you convert to Foundation 2, the premiums are specified according to your age on the date of conversion.
**Retirees may choose to pay premiums monthly or annually. Sorry, retirees are not eligible to use payroll deductions.
 

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Premium Choice
 
Premium Protection brochure - click for PDF

Click on image for brochure

Premium Choice gives you a real-cash value investment, and low-cost premiums in one universal life policy. You can choose whole life insurance coverage of $10,000, $15,000, $25,000, or $50,000.

With this policy, your premiums go into a cash account that earns tax-free interest at favorable rates. Each month interest is added to your account, then the cost of your insurance protection and a small administration fee are deducted.

You can increase or decrease your insurance coverage, add lump sums to your cash account, withdraw cash, change or even stop premium payments while your insurance coverage stays in effect as long as the account value will cover the cost of insurance and policy fees.**

Premium Choice protects your earning power with a minimum rate of return guaranteed for a full year. Your earned interest will never be less than 5 percent annually. Premiums payments can be made monthly or annually, or through convenient biweekly payroll deductions.*
*Retirees may choose to pay premiums monthly or annually. Sorry, retirees are not eligible to use payroll deductions.
**Subject to IRS regulations and the guidelines as set forth in the plan's contract.
 

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START
 
START brochure - click for PDF

Click on image for brochure

START is a limited-payment life insurance policy especially suited to letter carriers who want to insure their young children. It lets you build up cash for your children's future. Whether you choose $10,000, $15,000, $25,000 or $50,000 worth of coverage, you pay premiums for 20 years. In the event of the insured's death, START will pay survivors the full amount of the policy.

After the 20 years, you may keep the coverage at no cost or surrender your policy for its cash value. If you choose to keep the policy in force, your cash value will continue to build up at current dividends rates. You may borrow against or surrender your START plan any time.

START premiums may be paid once a year, 11 times a year or biweekly under the payroll deduction agreement.*
*Retirees may choose to pay premiums monthly or annually. Sorry, retirees are not eligible to use payroll deductions.
 

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TARGET 65
 

Click on image for brochure

TARGET 65 is a limited-payment life insurance policy suited to meet your financial needs, both present and future. It is an excellent way to maintain a lifetime of insurance protection for you and your loved ones while paying premiums only during your income-earning years.

Whether you choose $10,000, $15,000, $25,000 or $50,000 worth of coverage, you pay premiums until the policy anniversary after your 65th birthday. At that point, your Target 65 policy becomes fully paid and the insurance coverage continues to remain in force for the Insured's entire lifetime. Your cash value will continue to build up at current dividend rates. You may borrow against or surrender your Target 65 policy at any time.

TARGET 65 premiums may be paid once a year, 11 times a year or biweekly under the payroll deduction agreement.*


*Retirees may choose to pay premiums monthly or annually. Sorry, retirees are not eligible to use payroll deductions.

 

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Group Policy
  This Group Accidental Death Benefit Contract provides $5,000 of accidental death benefit coverage for every active and retired member of the NALC. The NALC pays the entire premium for the basic coverage; each branch has the option to purchase additional accidental death benefits and level-term life insurance coverage.
 

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Independence
 
Independence brochure - click for PDF

Click on image for brochure

A single, once-in-a-lifetime payment provides your loved ones with the financial security of Whole Life Insurance.

Independence was designed specifically for NALC members to be a safe, affordable and convenient way to bring your loved ones closer to financial independence. One payment at the time of purchase covers the insured for their entire lifetime.

Make a single payment and instantly receive all the benefits of Independence:

  • Immediate cash value;
  • Availability of low-interest loans;
  • Generous dividends;
  • And of course death benefits.

Choose how much coverage you want —$5,000, $10,000, $20,000 or propose some other amount. And if your MBA Term Policy is expiring, consider using your dividend balance to
purchase an Independence plan.

 

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  Retirement Plan
 
Maturity Income
 
Maturity Income brochure - click for PDF

Click on image for brochure

Maturity Income is a retirement income plan designed to supplement your pension. You make small payments to the plan while you're young, so you can receive a lifetime of monthly payments after you retire—even if you live to be 200!

Under the Maturity Income plan, you can also request a guaranteed number of monthly payments.

You choose the amount you want to contribute to your Maturity Income Plan. It can be as little as $15 per pay period (the minimum amount allowed). You may also select your method of payment: MBA can deduct payments automatically from your paycheck, or bill you monthly or annually.*

As your Maturity Income plan grows, you can expect to earn competitive interest rates. The plan is tax-deferred, which means you do not pay taxes on any of your interest until you draw on it, further improving your yield.


Protection Against Falling Interest Rates

The interest you earn with Maturity Income is competitive with most savings banks, because MBA has low overhead and does not use salespeople.

Tax-Deferred Income—You don't pay federal income taxes on your cash build-up until you draw on it, so your money grows even faster.

IRA Deduction—Maturity Income contains a provision that allows you to make it a Traditional IRA. Annuity plan contributions are not tax deductible, whereas IRA contributions can be up to $4,000.**

Roth IRA—The Roth IRA is a newer type of Individual Retirement Account that allows you to contribute a maximum of $4,000 per tax year** (per person) if your adjusted gross income does not exceed $95,000 for single-filers and $150,000 for married joint filers. The contributions aren't tax-deductible, but earnings accumulate tax-free. Earnings are free from taxes at the time of withdrawal if the owner has held the IRA for a minimum of five years and is at least 59-1/2 years of age.

  Traditional IRA Roth IRA
Contributions may be Tax-Deductible YES
NO
Other Key Tax Advantages Tax-deferred growth  Tax-FREE growth
Tax Treatment Of Withdrawals Earnings and deductible contributions subject
to tax
 Distributions are Tax-FREE
(if account is at least 5 years old and age 59-1/2)
Penalty-free withdrawals  YES *  YES *
* Allowed for qualified higher education expenses, first home purchases (up to $10,000), major medical expenses, certain long-term unemployment expenses, disabillity or death. Before choosing a Traditional or Roth IRA, you should consult a tax advisor for assistance.

** Please refer to the IRA Contribution Chart.


Traditional and Roth IRA Contribution Limits
  2001 2002 2003 2004 2005 2006 2007 2008 2009
& After
Traditional IRA
Under age 50
$2,000 $3,000 $3,000 $3,000 $4,000 $4,000 $4,000 $5,000 $5,000
+ COLA*
Traditional IRA
Age 50 or over,
but under age 70-1/2

$2,000 $3,500 $3,500 $3,500 $4,500 $5,000 $5,000 $6,000 $6,000
+ COLA**
Roth IRA
Under age 50
$2,000 $3,000 $3,000 $3,000 $4,000 $4,000 $4,000 $5,000 $5,000
+ COLA*
Roth IRA
Age 50 or over
$2,000 $3,500 $3,500 $3,500 $4,500 $5,000 $5,000 $6,000 $6,000
+ COLA**


An individual who is age 50 or older may contribute $5,000 to a Traditional IRA or a Roth IRA, but if the individual contributes to both, the total contribution to both will be limited to $5,000. In addition, remember that Traditional and Roth IRA contributions are limited to 100 percent of the individual's earned income.

* Cost of living adjustment (COLA) is made in $500 increments.

** Cost of living adjustment (COLA) applies only to $5,000 contribution limit as above, not to the extra $1,000 contribution limit that is available to individuals age 50 or older.



When you're ready to retire, MBA offers a choice of four ways to collect monthly benefits:

Life Annuity With Period Certain.
Receive a lifetime of monthly payments. You're guaranteed this income for as long as you live. If you die during a specified period (5, 10, 15 or 20 years), payments go to your beneficiary until the end of the period.

Life Annuity. Receive monthly payments through your lifetime. No further benefits will be paid after your death.

Joint Life Annuity. You or your beneficiary receive monthly payments as long as either of you live.

Full Cash Refund. Receive monthly payments as long as you are alive. When you die, the MBA will pay any money in your account to your beneficiary.


*Retirees may choose to pay premiums monthly or annually. Sorry, retirees are not eligible to use payroll deductions.

 

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  Accident and Health Plans
 
Hospital Plus
 
Hospital Plus brochure - click for PDF

Click on image for brochure

If you are hospitalized for illness or injury, the MBA can help your financial health with cash payments of $30, $50, $75 or $100 a day. With Hospital Plus, cash benefits start on the first day you are hospitalized, and continue for up to 365 days.

Hospital Plus also lets you cover your spouse and children. The spouse benefit is the same as yours—$30, $50, $75 or $100 a day. Children's benefits are $18, $30, $45 or $60 a day.

Benefits are paid in full regardless of other health insurance benefits you receive. Cash benefits are paid directly to you and may be used for any purpose. This is extra cash protection to help you meet the financial burdens of accidents and illnesses.

All applying members, regardless of age, and their eligible dependents may be covered. As long as you pay your premium, you may keep your policy, regardless of prior benefits received or future health conditions. Rates will not be individually raised.

Repeat claims for the same or related causes will be treated as claims for the same cause (and included in a single 365-day limit), if recurring hospital stays are not separated by six months. Such claims will be covered only if the policy is then in force.

The policy contains a benefit restriction for pre-existing conditions—a condition for which medical advice or treatment was received during the 12 months before the effective date of our policy. Also, a pre-existing condition will not be covered until 12 consecutive months have passed in which no medical advice or treatment is received for such condition, or until your policy has been in effect for 1 year, whichever occurs first.

 

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For more information...

—contact your local NALC branch office
—call MBA's nationwide toll-free line: (800) 424-5184
Tuesday and Thursday—8:00 a.m. to 3:30 p.m. Eastern Time
—call MBA at (202) 638-4318
Monday thru Friday—8:00 a.m. to 3:30 p.m. Eastern Time

  © National Association of Letter Carriers, AFL-CIO