Mutual Benefit Association: It Might Be Right for You.
The NAC’s Mutual Benefit Association (MBA) was the first benefit the union started for letter carriers going back to 1891. It started as a simple life insurance policy that carriers could purchase, something unavailable through the job back then. Today, MBA has a variety of polices and products available to letter carriers and their families. In this and in subsequent issues of the LIMB we will look at the different products.
You are saying to yourself “Life insurance? I am covered by the Federal Employees Group Life Insurance I signed up for at orientation/conversion” True. FEGLI insurance is good to have and cheap. But there are some things that one needs to know regarding it’s rules. When you sign up for FELI the amount of insurance choose is likely going to be the amount you’ll have your entire career. There has only been one opportunity to change your coverage in the last 40 years! At retirement one has the choice to either keep the policy, which increases one’s costs and continues to rise as time goes by or to let the policy diminish in value each year until it bottoms out at $2000 in value. Choosing to keep the FEGLI policy and paying more for it does not change the value. It is still worth what you sign up for.
Unlike FEGLI, MBA’s Whole Life policies provide cash value to you and your family. Dividend options are receiving cash payment, using it to purchase more insurance on the policy, or leaving the money in the policy account earning interest. At the time of this writing the dividend is paying 3%. One can insure themselves, their spouse, children including step- children, grandchildren including step-grandchildren, great grandchildren or step great grandchildren, and members parents. Premiums remain the same over the course of the policy and can be purchased in policies from $5,000 up to $150,000. The cost is based on the age of the insured and the amount of the policy. A policy can be opened at any time; there is no open season. There are 4 options of whole life available through MBA.
MBA Whole Life Insurance: Affordable, lifelong coverage, dividends earned and able to borrow against the cash value. Issued from ages 0-90. Premiums remain the same payable annually, monthly or bi-weekly. Independence Single Premium: Issued from ages 0-80. The one time premium immediately starts with cash value. Premiums, coverage, dividends and borrowing options are the same a s the Whole Life policy. Whole Life Paid in 20 Years: Same as previous policies but premiums are structured to be paid off in 20 years. Issued ages 0-80. Whole Life Paid Up At Age 65: Same as previous policies but with these exceptions. Issued ages 0-55. Premiums end on the policy’s anniversary date after the insured 65th birthday.
MBA can be contacted by website at NALC.org/MBA, by phone at (800) 424-5184 Tuesday & Thursday 8AM-3:30PM, or at (202) 638-4318 Monday-Friday 8AM-3:30PM. I can be reached Wednesday evenings 5PM-8PM at the branch office at (631) 789-1616.
