life insurance nondiscrimination tests

BUYING LIFE INSURANCE TO COVER ELDERLY PARENTS

Section 125 Plan - Nondiscrimination Testing Requirements
compliance an annual test must be performed and the results documented for each . apply to 401(k) plans, group term life insurance plans, self-insured medical .
http://www.arlengroup.com/facts/fact_sec125_ndtest.pdf

Nondiscrimination Requirements
Special Nondiscrimination Tests for Life Insurance Under Code Section 79. What are the nondiscrimination tests for group term life insurance plans?
http://www.wisbankins.com/WBAInsuranceTrust/nonDiscrimination/nonDiscriminationRequirements.html

Employee Welfare Benefit Plan Nondiscrimination Testing Review
Nov 17, 2011. Benefit Plan. Nondiscrimination Testing Review . Group Term Life Insurance ( Step 1) . its own nondiscrimination test is exempt from IRC .
http://www.psfinc.com/hcr/files/111711/111711-slides.pdf

Paychex Insurance Agency | Non-Discrimination FAQ
Rules similar to the non-discrimination rules for self-insured plans were . Which test would an employer use for discrimination testing for waiting period and . by the non-discrimination provisions of the reform; however, group life insurance .
http://www.paychexinsurance.com/healthcarereform/faq/non-discrimination-faq.aspx

BenefitsLink Message Boards > non discrimination and testing
Would the above type of life insurance be discriminatory on its own, thus preventing plan from passing non discrimination testing? thanks .
http://benefitslink.com/boards/lofiversion/index.php/t50835.html

Term Life Insurance (for healthy seniors)

Key features:

  • Medical examination required, to prove that the insured is in good health

  • Flexible Benefits Answer Book, Sixth Edition Ashley Gillihan ...
    . Contracts · Health Law & Administration · Insurance Law .
    http://www.aspenpublishers.com/Product.asp?catalog_name=Aspen&product_id=0735582009&cookie_test=1

  • Insured covered up to the age of 90 or 95 (depends on insurance company guidelines)
  • Premiums increase towards the end of the Term
  • Many seniors outlive the fixed term so look for a policy that can be converted to whole life insurance
  • Consider purchasing Burial Insurance also, should the senior outlive the Term

Burial Insurance (for healthy seniors)

Key features:

  • No medical examination required
  • Insured person is covered for life
  • Premiums are locked-in and do not change
  • Moreover, cash value increases over time
  • If the insured is healthy, then you receive full benefit the day after you pay your first premium
  • Coverage cannot be canceled as long as you pay your premiums on time
  • Proceeds can be used for burial costs and other end-of-life expenses

 

Graded Benefits Burial Insurance (for seniors with health problems)

Key features:

  • No medical examination required
  • Insured person is covered for life
  • Premiums are locked-in and do not change
  • Policy increases in cash value over time
  • You typically only get partial coverage for the first two years, and the full insured amount only in the third year of the policy
  • Insurance company cannot cancel coverage as long as you pay premiums on time
  • Proceeds can be used for burial costs and other end-of-life expenses

FAQs about Employees and Employee Benefits
What are the tests for discriminatory benefits in qualified plans? . . . . . . . . . . . . . What are the non-discrimination rules for group-term life insurance? . . . . . . . 14 .
http://workplaceflexibility2010.org/images/uploads/ERISA%20FACTS.pdf

 

 

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