National Conference on Public Employee Retirement Systems

The Voice for Public Pensions

Group Life Insurance: Facts

  • The Plan is completely voluntary.
  • There are currently more than 85,000 enrollees in the Plan.
  • Eligible members may join within 90 days of hire (or effective date of membership with the retirement system) or at open enrollment, without medical proof of insurability.
  • The Plan will pay its benefit in addition to other insurance plans.
  • The member can terminate benefits at any time by stopping the monthly contributions.
  • Subject to applicable state law, Prudential’s Alliance Account® is the standard settlement option for death benefits of $5,000 or more.1 We will establish an interest-bearing account in the beneficiary’s name. Beneficiaries earn interest as long as the account remains open. They can withdraw the full amount immediately, write drafts2 against the balance, or leave the funds in the account to collect interest.  For death benefits of less than $5,000, claims will be settled via a lump sum check.
  • The following settlement and payment options are available as an alternative to the Alliance Account:
  •  Lump Sum: The beneficiary may receive the full death benefit in a single lump sum check. 
  • Payment for a Fixed Period: The death benefit plus interest may be paid over a fixed number of years (1 to 25) either monthly, quarterly, semiannually, or annually3.
  •  Payment in Installments for Life: The death benefit may provide monthly payments in installments for as long as the beneficiary lives.
  •  Payment of a Fixed Amount: The beneficiary may choose an income payment of a stated fixed amount either monthly, quarterly, semiannually, or annually.
  •  Interest Income: All or part of the proceeds may be left with Prudential to earn interest, which can be paid annually, semiannually, quarterly, or monthly. The minimum deposit is $1,000
  • Coverage for spouse and eligible dependent children automatically included, as well as Accidental Death and Dismemberment (AD&D) for employee/ retiree. 
  • At no added cost, for members age 45 and under, Prudential will reimburse the amount of Student Loans members owe up to a maximum of $50,000, should you become totally disabled and have an outstanding student loan balance. 
  • The Plan is administered by Member Benefits, Inc.
  • The NCPERS life insurance program is sponsored by NCPERS.  The life insurance program is issued by The Prudential Insurance Company of America (“Prudential”), Newark, NJ.   Membership in NCPERS is required for the Program.   Prudential, and not NCPERS, is solely responsible for administering the benefits under the policy.  The benefits under the policy are guaranteed by Prudential’s general account and are subject  to Prudential’s claims paying ability.

If interested in knowing more about the plan for your retirement system contact
Shawn Adkins at 303.889.2780 or

1 Beneficiaries may wish to consult a tax advisors regarding interest earned on the account.
There are fees for special services, such as stop payment requests. Prudential’s Alliance Account is a registered trademark of The Prudential Insurance Company of America. 
2Alliance Account drafts are considered checks under federal law for certain purposes.
3Interest rates may change.

The Bank of New York Mellon is the Administrator of the Prudential Alliance Account Settlement Option, a contractual obligation of The Prudential Insurance Company of America, located at 751 Broad Street, Newark, NJ 07102-3777. Draft clearing and processing support is provided by The Bank of New York Mellon.  The Bank of New York Mellon is not a Prudential Financial company. Alliance Account balances are not insured by the Federal Deposit Insurance Corporation (FDIC).  All funds are held within Prudential's general account, which is not FDIC insured because is not a bank account or bank product.