Let’s assume you’re an educator who’s interested in purchasing life insurance. You’ve learned that your professional association offers group rates on life insurance, and you’ve come to the Trust for Insuring Educators (TIE) website to check it out.
Here you find three “group term life insurance” policies from which to choose, and you wonder, What’s the difference between each coverage, and which one may be right for me?
Before we address those questions, if you’re unfamiliar with life insurance terminology, please see our Glossary of Life Insurance Terms.
All the policies summarized below are group insurance policies that can provide coverage for the insured to a maximum of age 80, except the Group Accidental Death & Dismemberment policy, which terminates at age 65.
Now let’s look at each policy in more detail.
Group Term Life Insurance
This is TIE’s oldest life insurance policy, having been offered to members since the late 1980s.
This coverage has a straightforward design. It features unisex rates that are applied in five-year age bands.
Who is it for? This coverage may be of interest to members seeking long-term coverage and those who want to lock in coverage at member-only rates regardless of changes in their health status.
Coverage Available: $20,000 to $1,000,000 in increments of $20,000 for member and spouse. Spouse coverage cannot exceed member’s coverage. Dependent coverage up to $12,000 is also available.
Rates: There are two unisex rate tables: one for non-smokers, the other for smokers. Rates are applied in five-year age bands and adjust each time the insured enters a new age band.
Underwriting: Apply once and, if approved, retain coverage at standard rates for as long as desired to a maximum of age 80.
Additional Benefits: The policy includes an Accelerated Death Benefit if the insured is diagnosed with a terminal illness and a Waiver of Premium Benefit if the insured becomes totally disabled before age 60.5
Cost of Insurance: See the table below for comparison.
10-Year Level Group Term Life Insurance
Offered to members since 2006, this policy can be the lower cost of all three, if the member is willing to assume more underwriting risk to retain low-cost coverage beyond 10 years.
Coverage Use: This coverage may be suitable for members who want to boost coverage for a specific period up to 10 years — for instance, while a spouse is temporarily out of the workforce or while children are attending college.
Alternately, a member may reapply every 10 years to qualify for additional 10-year periods of fixed rates which can lower the overall cost of insurance depending on underwriting approval and individual circumstances.”.
Coverage Available: $100,000 to $1,000,000 in increments of $25,000 for members and spouses. Spouse coverage cannot exceed member’s coverage. Dependent coverage up to $10,000 is also available.
Rates: There are a total of 11 rate categories — five for men and five for women — in addition to ultimate rates that can apply to members of both genders. Rate categories are:
- Super Preferred, Preferred, and Standard rates for non-smokers, with separate rate tables for men and women.
- Preferred and Standard rates for smokers, with separate rate tables for men and women.
- Ultimate rates for non-smokers and smokers, with separate rate tables for men and women. Ultimate rates are applied if the insured continues the coverage after 10 years but does not reapply for an additional 10 years of fixed rates or does not qualify due to health status.
Underwriting: The initial application and underwriting provide 10 years of guaranteed fixed rates in the rate category for which the member is approved. An insured must reapply for coverage every 10 years to receive the lowest, fixed rates for which he or she is qualified through underwriting.
Coverage can continue to age 80 under the policy’s ultimate rates, if the insured does not reapply for fixed rates or does not qualify for fixed rates due to health status. Ultimate rates increase each year, and they range from 15 to 75 times higher than the fixed rates.
Additional Benefits: The policy includes an Accelerated Death Benefit if the insured is diagnosed with a terminal illness.5
Cost of Insurance: See the table below for comparison.
20-Year Level Group Term Life Insurance
Introduced in 2022, this policy provides fixed rates for 20 years.
Coverage Use: This coverage provides fixed rates for a period of 20 years and may be suitable for a member who has longer-term needs within that timeframe. After the initial period, rates may increase, and if eligible, an insured may elect to reapply for an additional level period, subject to underwriting approval and individual circumstances.
Coverage Available: $100,000 to $1,000,000 in increments of $25,000 for members and spouses. Spouse coverage cannot exceed member’s coverage. Dependent coverage up to $10,000 is also available.
Rates: There are a total of 11 rate categories — five for men and five for women — in addition to conventional rates that can apply to members of both genders. Rate categories are:
- Super Preferred, Preferred, and Standard rates for non-smokers, with separate rate tables for men and women.
- Preferred and Standard rates for smokers, with separate rate tables for men and women.
- Conventional rates for non-smokers and smokers, which are the same for men and women, are applied in five-year age bands and adjust when the insured enters a new age band. Conventional rates are applied if the insured continues coverage after 20 years but does not reapply for an additional 20-year period of fixed rates or does not qualify due to health status.
Underwriting: The initial application and underwriting provide 20 years of guaranteed fixed rates in the rate category for which the member is approved. An insured must reapply at the end of 20 years and pass medical underwriting to qualify for another 20 years of guaranteed fixed rates.
Coverage can continue to age 80 under the policy’s conventional rates, if the insured does not reapply for fixed rates or does not qualify for fixed rates due to health status. Conventional rates increase when an insured enters a new five-year age band and may be significantly higher than initial fixed rates.”
Additional Benefits: The policy includes an Accelerated Death Benefit if the insured is diagnosed with a terminal illness.5
Cost of Insurance: See the table below for comparison.
Group Accidental Death & Dismemberment Insurance
A staple of group insurance programs, this type of policy, also referred to as AD&D, has been offered since the inception of the TIE Insurance Program in 1972. It is a hybrid coverage that provides a death benefit for an accidental death only, plus benefits for various forms of dismemberment or loss of vision.
Coverage Use: AD&D maybe an option for a member who:
A. Wants guaranteed coverage with a simple application and no underwriting;
B. Values premiums that will not change during the life of the coverage; and
C. Is willing to forego a death benefit if death results from an illness or medical condition in exchange for protection against the accidental loss of one or both hands, feet, legs or arms, or the loss of sight in one or both eyes.
Coverage Available: From $30,000 to $300,000 in coverage in increments of $30,000.
Rates: There are two rate categories — member-only rates and family rates. They are not dependent on age or gender or health status and are designed to remain level for the life of the policy .
Underwriting: There is no medical underwriting for AD&D coverage. Any eligible member who applies is accepted for member-only or family coverage.
Additional Benefits: Policy benefits double if the claim is the result of school-related travel or common carrier travel. If family coverage is chosen, a Spouse Survivor Benefit pays a surviving spouse 1% of the benefit amount each month for six months. An Education Benefit pays 2% of the principal sum, to a maximum of $2,500, in four consecutive annual payments to any dependent child who is enrolled in school. A Total Disability benefit pays a monthly sum to age 70, based on a calculation specified in the policy, with proof of disability.
Cost of Insurance: See the table below for comparison.
Cost Comparison
The comparison below is based on a single scenario: the cost to provide $100,000 in coverage in the standard rates or middle rate tier of each policy for a female, non-smoker, with coverage beginning at age 25.
Your cost of coverage will vary, based on your age when coverage begins, your health status, the amount of coverage you choose, and the duration of your coverage.
Policy | 10-Year Cost | 20-Year Cost | 30-Year Cost | 40-Year Cost | Avg. Cost Per Month |
Group Term Life | $471 | $1,476 | $3,726 | $10,413 | $21.69 |
10-Year Level Group Term Life1 | $540 | $1,160 | $2,234 | $4,374 | $9.11 |
20-Year Level Group Term Life2 |
| $2,328 |
| $6,600 | $13.75 |
Group AD&D3 | $684 | $1,368 | $2,052 | $2,736 | $5.70 |
Cost figures are rounded to the nearest dollar.
1 Assumes coverage is underwritten and renewed at non-smoker Preferred Rates
at ages 35, 45 and 55. Preferred Rates are the middle of three tiers of rates.
2 Assumes the coverage is underwritten and renewed at non-smoker Preferred Rates
at age 45. Preferred Rates are the middle of three tiers of rates.
3 Rates for $100,000 were calculated on a cost-per-thousand basis. Group AD&D is
not available at a $100,000 coverage level.
Whichever policy you choose, you can be confident in the financial security you are providing for your beneficiaries. All term life insurance policies offered through the Trust for Insuring Educators are underwritten by New York Life Insurance Company (NYL), one of the nation’s oldest insurance companies. NYL has earned the highest possible financial strength ratings currently awarded to U.S. life insurers by all four major rating agencies.4
4 Individual independent rating agency commentary as of 9/30/2025 A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aa1), Standard & Poor’s (AA+).
5 Please note that receipt of Accelerated Death Benefits may affect your eligibility for public assistance programs and may be taxable. Prior to applying to receive such benefits, you should consult with the appropriate social services agency and seek the advice of a qualified tax advisor.