Term Life Plan

The Term Life Plan is a low-cost coverage option that provides a flat amount available in tiers from $5,000 to $50,000 or an income-based benefit amount. Rates are not based on age, and no evidence of insurability is required at any time.

The Term Life Plan is a low-cost way to offer security and peace of mind to employees who are not enrolled in the Death and Disability Plan. You can offer this term life coverage as part of your benefit offerings at a lesser cost than your employees could secure on their own.  

The Term Life Plan offers two features from which you can choose:

  • a fixed amount of coverage in tiers from $5,000 to $50,000; or
  • an income-based benefit amount, one times a member’s effective salary (new for 2021)

Here's why the Term Life Plan may be right for you and your employees:

  • Rates are not based on age.
  • There are no separate smoker rates.
  • No evidence of insurability is required at any time.
  • You can offer this as a tax-free benefit to employees, up to the IRS limit of $50,000.

Coverage and costs

As the employer, you choose the amount of term life coverage you provide to your employees, either

  • a flat amount available in tiers from $5,000 to $50,000; or
  • an income-based benefit amount, one times a member’s effective salary rounded to the next $1,000 to a maximum of $50,000.

Employers pay the full cost of term life coverage. Your cost is 20 cents per month per employee for each $1,000 of coverage.

​Coverage level​Cost per month per employee
​$5,000​$1.00
​$10,000​$2.00
​$15,000​$3.00
​$20,000​$4.00
​$25,000​$5.00
​$50,000​$10.00

For even greater security and peace of mind, when you offer the Term Life Plan, you can also offer supplemental death benefits to employees who enroll in the coverage.

Eligibility to participate

You may offer term life coverage to employees working at least 20 hours per week who are not enrolled in the Death and Disability Plan.

Interested in offering the Term Life Plan? Here's what to do next.

For current employers

If you currently offer benefits through the Benefits Plan of the Presbyterian Church (U.S.A.), you may elect this benefit when you update your Employer Agreement on Benefits Connect for the following year. Employer Agreements are usually available for updating beginning in July through October. 

For new employers

If you do not currently offer benefits through the Benefits Plan and would like to learn more about its features and how the Board of Pensions serves employers, call our Employer Services team at 800-773-7752 (800-PRESPLAN) to discuss how we can best meet your and your employees' needs.