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MBA Insurance Programs |
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Insurance plans offered by the MBA are designed
to give NALC members and their families the best possible protection for the lowest cost. |
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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
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Life
Insurance |
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Foundation 2
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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 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 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 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
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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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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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 |
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Maturity Income
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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.
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Traditional
IRA |
Roth IRA |
| Contributions
may be Tax-Deductible |
YES |
NO
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| 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
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YES
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* 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.
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| Traditional and
Roth IRA Contribution Limits |
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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
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$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.
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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 |
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Hospital Plus
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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 |
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© National Association of Letter Carriers, AFL-CIO |
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