Dear IJA Members,

The insurance committee during the last nine months has conducted an evaluation of the State sponsored life insurance program.

We have-concluded that the cost for the State program is quite expensive and comparable insurance can be purchased individually at a much lower rate. If an individual is relatively healthy and would qualify for what is considered a preferred or standard rate the financial savings over ten, fifteen or twenty years can be quite substantial.

If an individual has a serious medical condition the rates on the open market, if available, would be similar to the premiums you are now paying for state coverage underwritten through Metropolitan Life Insurance Company.

In attempting to compare coverages we took an average individual 48 years of age with high blood pressure on medication and an individual who was healthy on no medication. We received quotes from several companies for standard and preferred fixed premium level term life policies ranging from periods of ten, fifteen and twenty year terms.

The cost savings for both the preferred and standard rate policies when compared to the State program was considerable.

The committee then invited these companies to make a formal presentation to the Insurance Committee of the IJA. These presentations occurred during the fall of 1995, and the committee concluded that the best available rates could be obtained on an individual policy basis rather than any form of group insurance.

The financial savings to members varies depending upon your age and health. An example would be a healthy forty-eight year old who could save forty-five thousand dollars over the life of a twenty year fixed term policy in comparison to the state plan, for four hundred thousand dollars coverage.

Obviously, the younger and healthier you are make the savings more dramatic. But we found considerable savings can be obtained even with increased age and less than perfect health when compared to the extremely high rates for the state plan.

The reason for the State's rates being so expensive is that all individuals upon employment have the option to purchase insurance without showing any evidence of insurability.

If you wish to switch to individual coverage with another company it will necessitate filling out a medical questionnaire and having a limited physical exam.

The results of the insurance hearings were submitted to the IJA Board at the annual meeting held December, 1995. The Board chose not to endorse any specific company or individual but instead instructed the committee to publish its findings and to list the names of the companies and individuals who made presentations which the committee found to be acceptable and to publish their names and phone numbers so individual members could feel free to contact these individuals if desired.

All below mentioned individuals would be more than willing to assist IJA members or please contact your own insurance agent to obtain a quote. The purpose of the Insurance Committee report is not to generate any business for any individual insurance agents but to make the membership aware of significant differences in costs versus the State plan. We do not endorse or recommend any individual agent or their companies. We list the below named individuals as a potential resource if you decide to explore changes in your life insurance coverage.

David Barkhausen - Lake Forest, IL 1-800-600-6080 Representing - Northwestern Mutual and CNA Insurance

Pat Heseman - Nashville, IL 1-800-395-1088 Representing - Cincinnati Life Insurance Co.

James Librizzi - Oak Brook, IL 1-800-838-5804 Representing - Kemper Insurance

Marshall Norris - Deerfield, IL 1-800-447-0144 Representing - Trans America, Jackson National, Protective Life

The above named individuals made presentations to the IJA Insurance Committee and their rates are substantially less than those offered under the State of Illinois plan.

Each individual must decide what is the best program for his or her individual needs. I will be glad to speak to members on an individual basis. If there are any matters where I can be of assistance, please contact Maureen McClelland at the IJA office at 847-581-9738 and she will forward any messages.

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