Optional Term Life (OTL) Insurance

Elections (changes or enrollments) for OTL and AD&D, under the IBM Group Life Insurance Plan, can be made at any time during the year. However, enrollments in OTL may be subject to completing a medical review, with one exception*:;

• Optional Term Life (OTL) (under the IBM Group Life Insurance Plan)*
• Accidental Death & Dismemberment (AD&D) (under the IBM Group Life Insurance Plan)

*Exception: During Annual Enrollment only, IBMers who are currently enrolled in OTL for themselves can increase their OTL insurance by 1 level of coverage, up to the lesser of 3 times annual base pay or $750,000, without having to complete a medical review.^1,2

If you were hired within the past 60 days, you have an opportunity to enroll for term life insurance coverage for yourself in an amount equal to 3 times your annual base pay (capped at $750,000) without answering any medical questions. You can also enroll your spouse/domestic partner in term life insurance up to $50,000 without answering any medical questions. Coverage for child(ren) is also available; see below for more information. Coverage amounts for you are rounded up to the next higher multiple of  $1,000 as applicable.^1,2

What is OTL?

OTL provides term life insurance coverage in the form of yearly renewable life insurance as long as you are an IBM employee. Once you enroll in OTL, your insurance coverage will carry over from year-to-year, unless you request to discontinue your coverage or if you are no longer eligible. Any increase to your base pay will result in an increase in OTL (including AD&D insurance if you enroll) for yourself. If you are eligible for IBM-provided life insurance (GLI), you are eligible for OTL. IBM supplemental employees and Long-Term Supplemental employees are also eligible for MetLife OTL coverages.

OTL provides you with the opportunity to get additional life insurance for yourself as well as your spouse/domestic partner and child(ren). It is intended to supplement the Group Life Insurance coverage provided by IBM.

You can enroll your spouse/domestic partner and child(ren) in OTL, even if you choose not to enroll yourself.

• Spouses/domestic partners can be covered until the end of the month in which they attain age 80.
• Children can be covered until the end of the month in which they attain age 26, this includes your natural children, stepchildren, adopted children, and any child who resides with and is fully supported by you. Children who are disabled and were enrolled in OTL prior to attaining age 26 are eligible to retain coverage. Disabled means incapable of self-sustaining employment because of mental or physical handicap.

You must be actively at work to enroll in term life insurance coverage for yourself or your dependent(s).³

You pay for the costs of the term life insurance under OTL on an after-tax basis via payroll deductions. After you separate from IBM, you can continue coverage, however, with a different cost structure on a self-pay individual basis.

As part of OTL, if you purchase life insurance for yourself, you and your family are entitled to the following, at no additional charge:

• Will Preparation Services⁴ – Provides unlimited meetings with an attorney to prepare or update a will, living will, health care proxy, and Power of Attorney.
• Estate Resolution Services⁴ – Gives your beneficiary legal assistance for general questions about the probate process and settling estates.

Additionally, as part of OTL, if you purchase life insurance for yourself and/or your dependents, your beneficiaries and your enrolled dependents’ beneficiaries are entitled to the following, at no additional charge:

• Beneficiary Grief Counseling⁵ – Provides 5 in-person or telephonic counseling sessions and unlimited access to online self-help resources in the event of your passing.

OTL is available for you and your dependents as follows:

• Employee: Half your annual base pay or 1 – 10 times your annual base pay, rounded to the next higher multiple of $1,000 (if applicable), up to $4,000,000.
• Spouse/Domestic Partner⁶: $10,000 – $250,000 in $10,000 increments.
• Child(ren): $5,000 – $25,000 in $5,000 increments.

Depending on the amount of life insurance you select for yourself or your spouse/domestic partner, you may be required to complete a medical review, also known as a Statement of Health. You can enroll your dependent child(ren) without the need for a Statement of Health.

Changes are permitted to OTL coverages outside of annual enrollment periods; however, a medical review will be required for any increase in life insurance for you or your spouse/domestic partner. Certain qualified status changes such as marriage, entering into a domestic partnership, or the birth/adoption of a child will allow you the opportunity to increase OTL coverage, without a medical review, between annual enrollment periods. Refer to the qualified status changes section below for more information.

What is AD&D Insurance?

Accidental Death & Dismemberment (AD&D) insurance is a separate election from term life insurance and provides coverage for severe accidents or loss of life. It covers various losses such as loss of limbs, sight, speech and hearing, various forms of paralysis, brain damage, and coma. The cost for AD&D insurance is paid by you on an after-tax basis.

You do not need to enroll yourself in AD&D insurance in order to enroll your spouse/domestic partner and child(ren) in AD&D insurance.

• Spouses/domestic partners can be covered until the end of the month in which they attain age 80.
• Children can be covered until the end of the month in which they attain age 26, this includes your natural children, stepchildren, adopted children, and any child who resides with and is fully supported by you. Children who are disabled and were enrolled in OTL prior to attaining age 26 are eligible to retain coverage. Disabled means incapable of self-sustaining employment because of mental or physical handicap.

As part of OTL, if you purchase AD&D insurance for yourself, you and your family are entitled to the following, at no additional charge:

Travel Assistance⁷ – This benefit provides you and your family access to emergency services while you travel, plus medical, legal, transportation and financial assistance 24 hours a day, 365 days a year when you are more than 100 miles away from home.

AD&D coverage is available for you and your dependents as follows:

• Employee: Half your annual base pay or 1 – 10 times your annual base pay, rounded to the next higher multiple of $1,000 (if applicable), up to $4,000,000.
• Spouse/Domestic Partner⁸: $10,000 – $500,000 in $10,000 increments.
• Child(ren): $5,000 – $25,000 in $5,000 increments.

Regardless of the amount of AD&D insurance you select for yourself or your dependents, you will not have to complete a medical review, also known as a Statement of Health.

Changes are permitted to AD&D coverages between annual enrollment periods.

A qualified status change is an event impacting your family, employment, or coverage status. If you have a qualified status change, you must call the IBM Benefits Center – Provided by Fidelity within 60 days of the date of the qualified status change, otherwise you will not be able to take advantage of the lessened medical review requirements associated with certain qualified status changes, which are noted below.

Please note:

• Changes to accidental death and dismemberment insurance for yourself or your dependents never require a medical review.
• Retiree Supplemental employees must always complete a medical review when increasing term life insurance for themselves or their spouse/domestic partner.

Qualified Status Change	What Coverages can be changed?	Effective Date of Coverage Changes	Medical Review Requirements
Marriage or entering into a domestic partnership	May change coverage elections for employee and dependents	Changes are effective retroactively to the event date	Enrolled Employees: Can increase term life insurance by 1 level without a medical review, up to 3 times annual base pay or $750K, whichever is less. Employees may enroll for additional coverage by answering some medical questions1 Employees in ‘No Coverage’: Can elect 0.5 times or 1 times annual base pay, up to $750K, without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Spouse/Domestic Partner: Can enroll for or increase term life insurance up to $50,000 without a medical review. Spouses/domestic partners may enroll for additional coverage by answering some medical questions1 Children: No medical review is required
The birth, adoption, or placement for adoption of a dependent child	May change coverage elections for employee and dependents	Changes are effective retroactively to the event date	Enrolled Employees: Can increase term life insurance by 1 level without a medical review, up to 3 times annual base pay or $750K, whichever is less. Employees may enroll for additional coverage by answering some medical questions1 Employees in ‘No Coverage’: Can elect 0.5 times or 1 times annual base pay, up to $750K, without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Spouse/Domestic Partner: Can enroll for or increase term life insurance up to $50,000 without a medical review. Spouses/domestic partners may enroll for additional coverage by answering some medical questions1 Children: No medical review is required
The employee’s dependent's ceasing to qualify as a dependent under this insurance or under other group coverage	May decrease coverage elections for employee and dependents other than the dependent ceasing to qualify. Coverage for dependent ceasing to qualify would terminate	Changes are effective the first of the month following the date the employee requests the change	N/A
The death of a dependent	May decrease coverage elections for employee and dependents other than the deceased dependent. Coverage for deceased dependent would terminate	Changes are effective the first of the month following the date the employee requests the change	N/A
Divorce, legal separation, or annulment	May change coverage elections for employee and children. Coverage for spouse/domestic partner would terminate	Changes are effective the first of the month following the date the employee requests the change	Enrolled Employees: Can increase term life insurance by 1 level without a medical review, up to 3 times annual base pay or $750K, whichever is less. Employees may enroll for additional coverage by answering some medical questions1 Employees in ‘No Coverage’: Can elect 0.5 times or 1 times annual base pay, up to $750K, without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Spouse/Domestic Partner: N/A Children: No medical review is required
A change in the employee’s or the employee’s dependent's employment status, such as beginning or ending employment, strike, lockout, taking or ending a leave of absence, changes in worksite or work schedule, if it causes the employee or the employee’s dependent to gain or lose eligibility for group coverage	May change coverage elections for employee and dependents	Changes are effective the first of the month following the event	Enrolled Employees: Can increase term life insurance to 1 times coverage, up to $750K without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Employees in ‘No Coverage’: Can elect 0.5 times or 1 times coverage, up to $750K, without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Spouse/Domestic Partner: Can enroll for or increase term life insurance up to $50,000 without a medical review. Spouses/domestic partners may enroll for additional coverage by answering some medical questions1 Children: No medical review is required
A change in the employee's or the employee's dependent's residence, if it causes the employee's or the employee's spouse/domestic partner to gain eligibility for group coverage	May change coverage elections for employee and dependents	Changes are effective the first of the month following the date the employee requests the changes	Enrolled Employees: Can increase term life insurance to 1 times coverage, up to $750K without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Employees in ‘No Coverage’: Can elect 0.5 times or 1 times annual base pay, up to $750K, without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Spouse/Domestic Partner: Can enroll for or increase term life insurance up to $50,000 without a medical review. Spouses/domestic partners may enroll for additional coverage by answering some medical questions1 Children: No medical review is required
A change in the employee's or the employee's dependent's residence, if it causes the employee or the employee's dependent to lose eligibility for group coverage	May change coverage elections for employee and dependents	Changes are effective retroactively to the event date	Enrolled Employees: Can increase term life insurance to 1 times coverage, up to $750K without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Employees in ‘No Coverage’: Can elect 0.5 times or 1 times annual base pay, up to $750K, without a medical review. Employees may enroll for additional coverage by answering some medical questions1 Spouse/Domestic Partner: Can enroll for or increase term life insurance up to $50,000 without a medical review. Spouses/domestic partners may enroll for additional coverage by answering some medical questions1 Children: No medical review is required

Why is having enough life insurance protection so important?

It is important to take steps to make sure your family and loved ones would be financially prepared if you were no longer there to handle expenses like:

• Food
• Mortgage or rent payments
• Transportation
• Child care/education fees or student loans
• Credit cards
• Funeral expenses

Covering everyday living expenses and household bills is just one part of the life insurance equation. Without enough life insurance coverage, a premature death could have a major impact on your family’s and loved one’s financial security, lifestyle and savings. Many people would probably have trouble keeping up with longer term expenses like college tuition, caring for an aging parent, or retirement. 

It’s also important to consider life events that could cause you to need more protection as your financial commitments and lifestyle change. Getting a new job, getting married or entering into a domestic partnership, having children, continuing education, retiring, buying a home — these are all events that could call for adding more life insurance.