Two types of special discounts are built into the ADA Insurance Plans. Depending on the Plan and your coverage amount, your insurance premiums may be reduced by the following discounts.
The Premium Credit is a discount that reduces your gross rates based on a Plan's favorable financial experience. It is awarded in advance, meaning rates are discounted at the time each premium is due, even for new participants.
Once you are approved for coverage, you are eligible to receive a Premium Credit — regardless of your age, how much insurance you purchase, or how long you have been covered.
Recently declared Premium Credit discounts for each Plan:
| Plan | Premium Credit Discount | Effective Date |
|---|---|---|
| Term Life | 40% | January 1, 2008 |
| Term Plus® Universal Life | 40% | January 1, 2008 |
| Income Protection | 37% | May 1, 2008 |
| Office Overhead Expense | 52% | August 1, 2008 |
| MedCASH | 32% | April 1, 2008 |
Because the ADA operates the ADA Insurance Plans on a not-for-profit basis, the profits (or surplus) from the program are available to benefit members by reducing their insurance premiums. As financial experience varies over time, the Premium Credit for any Plan fluctuates accordingly.
The Premium Credit for the Term Life and Term Plus Plans is re-evaluated annually, and the new Premium Credit becomes effective every January 1. For all other Plans, the Premium Credit is re-evaluated semi-annually, with any change effective on the subsequent semi-annual premium due date.
The ADA Council on Members Insurance and Retirement Programs declares the Premium Credit awarded under each Plan on a regular basis. While Premium Credits are not guaranteed, the ADA has declared Premium Credits when the Plan's experience has been favorable.
When you purchase at least $500,000 of member life insurance, you benefit by receiving a volume discount. Depending on your coverage amount, you can save another 6%, 9%, or 11% off the cost of your ADA life insurance.
The volume discount reduces your cost of insurance for all member and spouse life insurance coverage you may have, including optional coverage. To be eligible for a volume discount, you must have $500,000 or more of member life insurance in the ADA Term Life and ADA Term Plus Plans. The applicable volume discount is deducted automatically and reflected on your premium notice.
If you qualify, one of three discounts will apply:
Note: Volume discounts are subject to change and are not guaranteed.
For questions about volume discounts, or to get a quote, contact a Plan Specialist at 866-607-5338 or ada@gwl.com.