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American Dental Association group insurance programs
American Dental Association 1group insurance programs HERBERT C. LASSITER,* LL.B., CHICAGO
Among the many privileges that flow from membership in the American Dental Association is one that is tangible, per sonal and direct : Eligibility to participate in the group insurance programs which the Association sponsors. There are two such plans, the Group Life Insurance Program and the Group Accident and Health Insurance Program.
GROUP LIFE INSURANCE The Group Life Insurance Program, which is underwritten by the Great-West Life Assurance Company, has been in effect since 1934. When it was instituted, the insurance benefit was $3,000, to age 53, diminishing each year thereafter in decrements of approximately 4 per cent, until, at age 76, the benefit was reduced to zero. •In the intervening years, how7ever, as a result of the attention and inter est of the leaders of the Association, the program has undergone periodic revisions designed to enhance its value as a sig nificant privilege of membership. These revisions have produced a plan which is second to none. Today, the basic death benefit is $20,000, and this level of benefit
pertains through age 60 before a logically phased diminution of benefit becomes effective. In addition, another $10,000 is payable for accidental death occurring before age 60 and, if total and permanent disability should occur prior to age 60, the premiums are waived during the pe riod of disability. This combination of benefits is avail able at an incomparably low cost, as evi denced in Table 1. Eligibility for the Group Life Insur ance Program extends to student mem bers, as well as active members, of the Association. Reference to Table 1 indi cates that most student members, being under age 30, pay only $40 annually for the coverage offered. Comparable term Table 1 • C o st o f life insurance program Age
Annual premium
Semi-annual premium
Up to 30
$ 40.00
$ 22.00
31 to 40
80.00
42.00
41 to 50
160.00
82.00
51 to 60
260.00
132.00
61 to 75 R enew al only
300.00
152.00
LASSITER . . . V O L U M E 64, J A N U A R Y 1962 * 49/35
Table 2 • M on thly indemnity a v a ila b le and rates o f payment Semi-annual rates M onthly benefits
A ccid en tal death benefit
Dismemberment benefits
A
$100.00
$3,000.00
B
200.00
3,000.00
C
300.00
D
A ges up to 50
Ages 50 to 60
Ages 60 to 65
$1,250/ 5,000
$16.05
$18.30
$ 22.80
$26.30
2,500/10,000
30.15
34.65
43.65
50.65
3,000.00
3,750/15,000
44.25
51.00
64.50
75.00
400.00
3,000.00
5,000/20,000
58.35
67.35
85.35
99.35
E
500.00
3,000.00
5,000/20,000
71.95
83.20
105.70*
F
600.00
3,000.00
5,000/20,000
85.55
99.05
126.05*
,
A ges** 65 to 70
Premiums payable half-yearly, Novem ber I and M ay I. *Note: A g e 60 to 65 premiums for these plans are renewal premiums only. **Note: Although the age limit for acceptance o f risks is the seventieth birthday (60 for Plans E and F) there is no termination age limit for renewal of insurance.
insurance benefits, if purchased, for ex ample, at age 25, on an individual basis, would cost at least $104.50 a year. More than 1,500 of the 23,000 mem bers presently insured under the life in surance plan are student members. Many o f these 1,500, because of limited per sonal finances, probably could find many other uses for the $40 paid for their life insurance. They have spent the money wisely, however, because not only have they protected their dependents, or their parents’ investment in their educations, but they also have guaranteed to them selves security against the potential of future loss of insurability. This is a most important consideration, one that should be regarded seriously by all student mem bers. An unexpected serious illness or accident can suddenly impair or destroy a man’s insurability. This, in turn, can work a severe hardship on both the man
and his family and complicate his estate planning unnecessarily. The few dollars paid for participation in the Group Life Insurance Program can reduce these problems.
GROUP ACCIDENT AND HEALTH INSURANCE The second Association-sponsored insur ance plan mentioned earlier in this ar ticle, the Group Accident and Health Insurance Program, is underwritten by the National Casualty Company of De troit and has been in force since 1952. More than 20,000 members are currently insured in the plan, the purpose of which is to provide indemnities for loss of in come occasioned through disability which arises from sickness or accidental bodily injury. Disability is a critical hazard faced by almost all practicing dentists. It can
Table 3 • M o n th ly indemnity a v a ila b le and cost of premiums under Ex tended C o v e r a g e Endorsement A ges up to 50 next birthday
A ges 51 to 60 next birthday
A ges 61 to 65 next birthday
$100
$11.00
$14.00
$18.00
$200
22.00
28.00
36.00
$300
33.00
42.00
54.00
$400
44.00
56.00
72.00
M onthly benefits
50/36 • THE JO U R N A L OF THE A M E R IC A N DENTAL A SSO C IA TIO N
only be guarded against by the purchase o f adequate indemnifying insurance such as that provided through the Association’s plan. Sickness benefits are payable for two years, beginning with the eighth day of disability, and accident benefits are pay able for five years, from the first day of disability. In addition, lump sum benefits are payable for accidental death and for certain categories of dismemberment which result from accidental causes. The levels of monthly indemnity available range from $100 to $600, as illustrated in Table 2. Optionally available to members in sured for basic coverage, is an Extended Coverage Policy under which the period for which sickness benefits will be paid can be extended from two years to seven years, and accident benefits from five years to life. The levels o f monthly in
demnity available under the Extended Coverage Endorsement range from $100 to $400, in accordance with the schedule shown in Table 3. Student members o f the Association are not eligible for the Group Accident and Health Insurance Program since they are not regarded as having an insurable inter est. It is important for them to be aware of the program, however, since otherwise uninsurable risks may obtain up to $200 per month basic indemnity benefits if they apply for coverage under the plan within 60 days o f attainment o f active membership and entry into active prac tice. This is a valuable right and should not be forgotten.
•Secretary, Council on Federal Dental Services.
Insurance
and
Council
on
Oath
• I will look upon him who has taught me this art even as one of my parents. I will share the fruit of my experience with him, and I will encourage his call for aid. I will regard all young dentists as my own sons, and I will offer them my knowledge and technics. I will teach by every means I know those valued lessons that were passed on to me by my predecessors. The regimen I shall adopt shall be for the benefit of my patients according to my greater ability and judgment to protect and preserve their natural dentition. I will agree to no procedure which cannot be substantiated by sound professional judgment and scientific diagnosis. Whosoever shall enter my office shall receive the same consideration and service as my own flesh and blood.
Charles M. Stebner, Oath of Hippocrates, as revised for modern dentistry.
Among the many privileges that flow from membership in the American Dental Association is one that is tangible, per sonal and direct : Eligibility to participate in the group insurance programs which the Association sponsors. There are two such plans, the Group Life Insurance Program and the Group Accident and Health Insurance Program.
GROUP LIFE INSURANCE The Group Life Insurance Program, which is underwritten by the Great-West Life Assurance Company, has been in effect since 1934. When it was instituted, the insurance benefit was $3,000, to age 53, diminishing each year thereafter in decrements of approximately 4 per cent, until, at age 76, the benefit was reduced to zero. •In the intervening years, how7ever, as a result of the attention and inter est of the leaders of the Association, the program has undergone periodic revisions designed to enhance its value as a sig nificant privilege of membership. These revisions have produced a plan which is second to none. Today, the basic death benefit is $20,000, and this level of benefit
pertains through age 60 before a logically phased diminution of benefit becomes effective. In addition, another $10,000 is payable for accidental death occurring before age 60 and, if total and permanent disability should occur prior to age 60, the premiums are waived during the pe riod of disability. This combination of benefits is avail able at an incomparably low cost, as evi denced in Table 1. Eligibility for the Group Life Insur ance Program extends to student mem bers, as well as active members, of the Association. Reference to Table 1 indi cates that most student members, being under age 30, pay only $40 annually for the coverage offered. Comparable term Table 1 • C o st o f life insurance program Age
Annual premium
Semi-annual premium
Up to 30
$ 40.00
$ 22.00
31 to 40
80.00
42.00
41 to 50
160.00
82.00
51 to 60
260.00
132.00
61 to 75 R enew al only
300.00
152.00
LASSITER . . . V O L U M E 64, J A N U A R Y 1962 * 49/35
Table 2 • M on thly indemnity a v a ila b le and rates o f payment Semi-annual rates M onthly benefits
A ccid en tal death benefit
Dismemberment benefits
A
$100.00
$3,000.00
B
200.00
3,000.00
C
300.00
D
A ges up to 50
Ages 50 to 60
Ages 60 to 65
$1,250/ 5,000
$16.05
$18.30
$ 22.80
$26.30
2,500/10,000
30.15
34.65
43.65
50.65
3,000.00
3,750/15,000
44.25
51.00
64.50
75.00
400.00
3,000.00
5,000/20,000
58.35
67.35
85.35
99.35
E
500.00
3,000.00
5,000/20,000
71.95
83.20
105.70*
F
600.00
3,000.00
5,000/20,000
85.55
99.05
126.05*
,
A ges** 65 to 70
Premiums payable half-yearly, Novem ber I and M ay I. *Note: A g e 60 to 65 premiums for these plans are renewal premiums only. **Note: Although the age limit for acceptance o f risks is the seventieth birthday (60 for Plans E and F) there is no termination age limit for renewal of insurance.
insurance benefits, if purchased, for ex ample, at age 25, on an individual basis, would cost at least $104.50 a year. More than 1,500 of the 23,000 mem bers presently insured under the life in surance plan are student members. Many o f these 1,500, because of limited per sonal finances, probably could find many other uses for the $40 paid for their life insurance. They have spent the money wisely, however, because not only have they protected their dependents, or their parents’ investment in their educations, but they also have guaranteed to them selves security against the potential of future loss of insurability. This is a most important consideration, one that should be regarded seriously by all student mem bers. An unexpected serious illness or accident can suddenly impair or destroy a man’s insurability. This, in turn, can work a severe hardship on both the man
and his family and complicate his estate planning unnecessarily. The few dollars paid for participation in the Group Life Insurance Program can reduce these problems.
GROUP ACCIDENT AND HEALTH INSURANCE The second Association-sponsored insur ance plan mentioned earlier in this ar ticle, the Group Accident and Health Insurance Program, is underwritten by the National Casualty Company of De troit and has been in force since 1952. More than 20,000 members are currently insured in the plan, the purpose of which is to provide indemnities for loss of in come occasioned through disability which arises from sickness or accidental bodily injury. Disability is a critical hazard faced by almost all practicing dentists. It can
Table 3 • M o n th ly indemnity a v a ila b le and cost of premiums under Ex tended C o v e r a g e Endorsement A ges up to 50 next birthday
A ges 51 to 60 next birthday
A ges 61 to 65 next birthday
$100
$11.00
$14.00
$18.00
$200
22.00
28.00
36.00
$300
33.00
42.00
54.00
$400
44.00
56.00
72.00
M onthly benefits
50/36 • THE JO U R N A L OF THE A M E R IC A N DENTAL A SSO C IA TIO N
only be guarded against by the purchase o f adequate indemnifying insurance such as that provided through the Association’s plan. Sickness benefits are payable for two years, beginning with the eighth day of disability, and accident benefits are pay able for five years, from the first day of disability. In addition, lump sum benefits are payable for accidental death and for certain categories of dismemberment which result from accidental causes. The levels of monthly indemnity available range from $100 to $600, as illustrated in Table 2. Optionally available to members in sured for basic coverage, is an Extended Coverage Policy under which the period for which sickness benefits will be paid can be extended from two years to seven years, and accident benefits from five years to life. The levels o f monthly in
demnity available under the Extended Coverage Endorsement range from $100 to $400, in accordance with the schedule shown in Table 3. Student members o f the Association are not eligible for the Group Accident and Health Insurance Program since they are not regarded as having an insurable inter est. It is important for them to be aware of the program, however, since otherwise uninsurable risks may obtain up to $200 per month basic indemnity benefits if they apply for coverage under the plan within 60 days o f attainment o f active membership and entry into active prac tice. This is a valuable right and should not be forgotten.
•Secretary, Council on Federal Dental Services.
Insurance
and
Council
on
Oath
• I will look upon him who has taught me this art even as one of my parents. I will share the fruit of my experience with him, and I will encourage his call for aid. I will regard all young dentists as my own sons, and I will offer them my knowledge and technics. I will teach by every means I know those valued lessons that were passed on to me by my predecessors. The regimen I shall adopt shall be for the benefit of my patients according to my greater ability and judgment to protect and preserve their natural dentition. I will agree to no procedure which cannot be substantiated by sound professional judgment and scientific diagnosis. Whosoever shall enter my office shall receive the same consideration and service as my own flesh and blood.
Charles M. Stebner, Oath of Hippocrates, as revised for modern dentistry.