Retired Teachers: Life Insurance Options And Benefits

Teachers have access to a variety of benefits, including life insurance, which can help protect their loved ones financially in the event of their death. While it is common for teachers in the UK to receive death-in-service benefits, which provide a payout from their employer if they pass away during their employment, personal life insurance policies can also be purchased to complement this benefit and provide additional financial protection. In the US, retired teachers may continue to receive health insurance and life insurance benefits, depending on their district and state. Additionally, retired teachers can also take advantage of life insurance options offered by organisations like the National Education Association (NEA). NEA offers complimentary life insurance for eligible retired members, providing financial protection for their families in case of an accident or death. This coverage includes life insurance, accidental death and dismemberment insurance, and a homicide benefit.

Life insurance options for retired teachers

Retired teachers have several life insurance options available to them. While it is common for teachers to be eligible for a death-in-service benefit through their employment, this typically pays out a lump sum to loved ones if the teacher passes away during their time in service. Therefore, it is recommended that teachers also take out a personal life insurance policy to help protect their loved ones financially and provide a greater level of protection.

There are several types of personal life insurance policies available, and the best option for retired teachers will depend on their individual needs and circumstances. Some of the most common types of life insurance include:

• Level term life insurance: This covers the policyholder for a specified period, usually up to 40 years, with a fixed lump sum payout to loved ones if the policyholder passes away during this time.
• Decreasing term life insurance: Similar to level term life insurance, but the payout amount reduces over the policy term. This type of insurance is ideal for covering a repayment mortgage.
• Whole-of-life insurance: This type of insurance covers the policyholder for their entire life, with a fixed lump sum payout guaranteed when they pass away. Whole-of-life insurance can be well-suited to retired teachers who are still in good health but may become costly if taken out at a younger age.
• Family income benefit: This type of insurance provides monthly income payments to loved ones for the remainder of the policy term if the policyholder passes away. This option may be ideal for retired teachers with young families to help with long-term budgeting.

When considering life insurance options, retired teachers should also be aware of any death benefits they may be entitled to as part of their teacher pension scheme. These death benefits will typically pay out a lump sum to loved ones, but additional personal cover is recommended to ensure all costs are covered.

Additionally, retired teachers may be able to obtain life insurance through their membership in professional associations, such as the National Education Association (NEA) in the United States, which offers complimentary life insurance for eligible members. This type of insurance can help supplement school district coverage or provide protection for retired teachers who are no longer covered by their former employer's insurance plan.

Death benefits for retired teachers

In Connecticut, the Teacher's Retirement System (TRS) provides death benefits to the dependent survivors of teachers who die before they retire. If a teacher dies while working in a Connecticut public school, their family receives a maximum survivor's benefit of $600 per month, plus a lump sum death benefit of up to $2,000. There is no annual cost-of-living adjustment for these benefits, which are set by state law.

The basic monthly benefits are as follows:

• $200 per month to one dependent child under 18 (or over 18 if disabled) or $300 per month divided equally between two or more such children.
• $300 per month to a surviving spouse or dependent former spouse who is receiving child support.
• If there is no surviving spouse or dependent former spouse, $300 per month to a dependent parent over age 65.

The maximum family survivor's benefit is $600 per month.

In addition to the monthly benefit, a surviving spouse receives a lump sum death benefit if they were living with the teacher when they died. The benefit is $1,000 for five or fewer years of Connecticut public school service and $200 for each additional year of service, up to a maximum of $2,000 for 10 years' service. If there is no surviving spouse, the death benefit can be used for burial expenses.

Instead of receiving the monthly survivor's benefit and the lump sum death benefit, a sole survivor over age 18 whom the teacher designated as a retirement beneficiary may choose to receive a lump sum payment equal to the teacher's total contributions to the TRS plus credited interest.

In Massachusetts, health insurance for retired teachers is not provided by the Massachusetts Teachers' Retirement System (MTRS) but is instead a local contractual benefit. Most school districts offer continued health insurance to their retirees, either through the Retired Municipal Teachers' (RMT) Program or their own group insurance plan.

The NEA Complimentary Life Insurance program also provides life and accidental death and dismemberment insurance to retired members who are actively employed in education. This coverage is fully paid for by the NEA Members Insurance Trust and offers $1,000 of term life insurance, up to $5,000 of accidental death and dismemberment (AD&D) coverage, and up to $50,000 of AD&D insurance for any covered accident that occurs while on the job or serving as an Association Leader.

How to get life insurance as a retired teacher

Life insurance is important to provide for your loved ones in the case of your death. There are a few options for retired teachers to get life insurance. Here is a guide on how to get life insurance as a retired teacher:

Check with your school district:

Most school districts offer continued health insurance to their retirees. Contact your local insurance coordinator to find out about your options. You may be able to participate in the Retired Municipal Teachers' (RMT) Program or your district may offer its own group insurance plan. It is important to do this a few months before you retire to ensure there is no lapse in coverage.

NEA Complimentary Life Insurance:

If you are an NEA member, you may be eligible for NEA Complimentary Life Insurance. This coverage is offered to active, staff, reserve, and retired members who are still employed in education. It provides $1,000 of term life insurance, up to $5,000 of accidental death and dismemberment (AD&D) coverage, and up to $50,000 of AD&D insurance for accidents that occur while on the job or serving as an Association leader. NEA Complimentary Life Insurance is provided by The Prudential Insurance Company of America and is fully paid for by the NEA Members Insurance Trust.

Supplemental Coverage:

Depending on your circumstances, you may want to supplement your coverage with additional life insurance products. NEA offers a Group Term Life Insurance Plan and an Accidental Death & Dismemberment Insurance Plan. These plans can provide added peace of mind and help secure your loved ones' financial future.

Other Options:

In addition to the above options, you may also want to explore life insurance policies offered by other insurance providers. Compare plans and rates to find the best option for your needs and budget.

Remember to review your insurance coverage regularly and make adjustments as needed to ensure that you and your loved ones are adequately protected.

The cost of life insurance for retired teachers

NEA Complimentary Life Insurance

Eligible retired members of the NEA Members Insurance Trust can take advantage of complimentary life insurance for teachers, issued by The Prudential Insurance Company of America (Prudential). This coverage includes life and accidental death and dismemberment (AD&D) insurance, with benefits ranging from $1,000 of life insurance to $150,000 in the event of unlawful homicide while on the job. This complimentary coverage can help protect your family by covering large financial obligations such as mortgages and college costs, as well as final expenses.

NEA Group Term Life Insurance Plan

The NEA Group Term Life Insurance Plan offers flexible coverage levels, ranging from $25,000 to $500,000, with no set term limits and no medical exam required. The premiums for this plan increase every five years, and the full benefit is guaranteed to not decrease before the insured turns 70. At age 70, the benefit amount reduces to half the initial amount, and at age 75, it further reduces to 10% of the initial amount. The cost of this plan will depend on the chosen coverage amount, with rates typically lower than those available to the general public due to the NEA's negotiating power.

Other Options

Retired teachers have a variety of life insurance options available to them, including whole-of-life insurance, over 50s plans, and personal life insurance policies. The cost of these policies will vary, with whole-of-life insurance potentially becoming costly if taken out at a young age, and over 50s plans offering guaranteed acceptance for those aged 50-85 but with lower sum assured amounts. Personal life insurance policies can be obtained through an award-winning broker service, allowing individuals to compare quotes and find the most suitable policy for their needs. The cost of these policies will depend on the level of risk assessed by the insurer, with premiums calculated based on factors such as age, health, and occupation.

Discounts on life insurance for retired teachers

Life insurance is important to have as it helps provide financial protection for your loved ones in the event of your premature death. While some retired teachers may be covered by their school district's insurance plan, others may need to purchase their own life insurance policy.

There are a few providers that offer life insurance discounts for retired teachers. Here are some options to consider:

NEA Complimentary Life Insurance

The NEA offers complimentary life insurance for teachers through the NEA Members Insurance Trust. This coverage is available to active, reserve, staff, and retired members who are actively employed in education. The coverage includes $1,000 of term life insurance, up to $5,000 of accidental death and dismemberment (AD&D) coverage, and up to $50,000 of AD&D insurance for accidents that occur on the job or while serving as an Association Leader. NEA also offers a homicide benefit of up to $150,000 for members who are victims of unlawful homicide while on the job.

American Federation of Teachers (AFT)

The AFT provides voluntary term life insurance options for its members, including retired teachers. While the details of the coverage are not specified, AFT offers special group discounts on auto and home insurance, as well as access to long-term care insurance specialists and discounted rates.

Discounts for Teachers

This website offers various discounts and deals for retired teachers, including life insurance discounts. They allow you to compare policy details and get fast quotes from leading life insurance providers, enabling you to choose the cover that's right for you at a discounted price. They also offer critical illness cover to provide additional protection for your family. Some of the specific deals mentioned on their website include:

• Life Search: 15% discount + up to £100 cashback on Life & Critical Illness Cover
• Howden Life & Health: 10% cashback on every policy + free will worth £130
• Life Insurance: 10% cashback on every policy + free will worth £130
• Over 50s Life Insurance: 10% cashback with every policy + free will worth £130

By exploring these options and comparing the coverage, costs, and benefits offered, retired teachers can find affordable life insurance plans that meet their specific needs and provide financial security for their loved ones.

Frequently asked questions