Product Availability (Underwriting)
A Request for Proposal (RFP) and Census Data must be submitted to Massachusetts Mutual Life Insurance Company (MassMutual) for a Terminal Funding Contract quotation.
The RFP must contain a detailed summary of all plan provisions to be included in the quotation. Many plans include non-standard benefits and/or benefit options that are not apparent without careful reading of the plan document. Examination of the plan document by a defined benefit consultant and a summary of relevant plan features is required for the RFP to assure that all benefits are modeled correctly for the quote and to specify any special information needs for processing.
The Census Data supplied for the quote should be as complete and accurate as possible. It should be in an electronic format and include all of the items listed in the Census Data Requirements form.
Based on our underwriting guidelines, MassMutual will determine whether or not to provide a quote based on the RFP.
Our underwriting guidelines for a Terminal Funding Contract follow.
Premium amounts:
- Minimum premium for all immediate benefits - $500,000
- Minimum premium for mix of immediate and deferred
benefits - $1 million
- Liability for immediate benefits must be at least 50 percent
of the premium amount
If the contract includes any of the following, we will decline to quote:
- Unrestricted Lump Sum option
- Cost of Living Increase tied to Consumer Price Index
- Disability benefits other than immediate vesting
- Variable annuities
Exceptions may be made at the discretion of the Product Manager. There may be additional administrative expenses for contracts that have non-standard provisions.
