Optional Term Life (OTL) Insurance

Optional Term Life (OTL) Insurance, including accidental death and dismemberment (AD&D) insurance, is available under the IBM Group Life Insurance Plan. Have a look around to find out more about coverage to protect you and your loved ones.

Annual Enrollment

Elections (changes or enrollments) for OTL and AD&D, under the IBM Group Life Insurance Plan, can be made at any time during year. However, enrollments in OTL may be subject to completing a medical review, with the following 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 increment of coverage, up to the lesser of 3 times annual base pay or $750,000, without having to complete a medical review.1,2

New Hires

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 are rounded up to the nearest $1,000.1,2

Learn more about Life and AD&D Insurance

Term Life Insurance

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. If you have a waiting period for GLI, that waiting period does not apply to OTL coverages. IBM supplemental employees and Long-Term Supplemental employees are 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 up to the nearest $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 between 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.

Accidental Death and Dismemberment Insurance (AD&D)

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 under OTL in order to enroll your spouse/domestic partner and child(ren) in AD&D insurance under OTL.

  • 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 up to the nearest $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 OTL coverages between annual enrollment periods.

Qualified Status Change

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 increment without a medical review, up to 3 times coverage 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 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

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 increment without a medical review, up to 3 times coverage 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 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

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 event 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 event 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 event

Enrolled Employees: Can increase term life insurance by 1 increment without a medical review, up to 3 times coverage 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 coverage, 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 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 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 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 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

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.

What’s the minimum amount of life insurance you should have?

To help you get an idea of how much to consider, try our calculator tool. Keep in mind that the amount of IBM-provided GLI insurance and other amounts of life insurance you or your spouse may have should be taken into consideration.

Please visit the FAQ section for more information on the Optional Term Life (OTL) coverages.

 

1 When a medical review is required, MetLife evaluates your request for coverage based upon your answers to the health questions, MetLife’s underwriting rules and other information you authorize us to review. In certain cases, MetLife may request additional information to evaluate your request for coverage.

2 This enrollment opportunity only applies to new hires who are not considered Retiree Supplemental employees. Retiree Supplemental employees, and their spouse/domestic partner, will need to complete a medical review for all amounts of life insurance they enroll for. 

3 If you are not actively at work, you will not be able to enroll in coverage for yourself or your dependents until you return to active work.

4 Will Preparation Services and Estate Resolution Services are provided by MetLife Legal Plans, Inc., Cleveland, Ohio. These services are provided at no additional cost to those who purchase employee term life insurance.

5 Beneficiary Grief Counseling services are provided through an agreement with LifeWorks. US Inc. LifeWorks is not an affiliate of MetLife, and the services LifeWorks provides are separate and apart from the insurance provided by MetLife. LifeWorks has a nationwide network of over 30,000 counselors. Counselors have master’s or doctoral degrees and are licensed professionals. This program is available only to beneficiaries of MetLife group Life Insurance programs. Events that may result in a loss are not covered under this program unless and until such loss has occurred.

6 OTL spouse/domestic partner coverage: The amount of OTL your spouse/domestic partner is able to enroll in is contingent on the amount of life insurance you are eligible for under the IBM Group Life Insurance Plan. For example, if you are eligible for 2 times annual base pay, rounded to the next higher $1,000 (if applicable), for IBM-provided GLI and 10 times annual base pay, rounded up to the nearest $1,000 (if applicable), under OTL, your spouse/domestic partner cannot enroll in life insurance greater than the dollar amount of 12 times your annual base pay, rounded up to the nearest $1,000 (if applicable), or $6,000,000, whichever is less. 

7 Travel Assistance and Identity Theft Solutions services are administered by AXA Assistance USA, Inc. Certain benefits provided under the Travel Assistance program are underwritten by Certain Underwriters at Lloyd’s London (not incorporated) through Lloyd’s Illinois, Inc. Neither AXA Assistance USA Inc. nor the Lloyd’s entities are affiliated with MetLife, and the services and benefits they provide are separate and apart from the insurance provided by MetLife.

8 AD&D spouse/domestic partner coverage: The amount of AD&D insurance your spouse/domestic partner is able to enroll in is contingent on the amount of AD&D insurance you are eligible for under the IBM Group Life Insurance Plan. For example, if you are eligible for 10 times annual base pay, rounded up to the nearest $1,000 (if applicable), under AD&D insurance, your spouse/domestic partner cannot enroll in AD&D insurance greater than the dollar amount of 10 times your annual base pay, rounded up to the nearest (if applicable), or $500,000, whichever is lesser.

These materials are intended to provide an overview of certain IBM plans and programs in which you may be eligible to participate. These materials are not an official Summary Plan Description and do not provide full details. The formal plan documents are the complete and exclusive statement of the company’s obligations under the Plan. The official Plan documents shall govern in the event of a conflict between the terms of the Plan documents and information contained in these or any other documents and statements. The Plan Administrator retains exclusive authority and discretion to interpret the terms of the IBM benefit plans and programs described herein.

Nothing in these materials is intended to be advice for any particular situation or individual. Life insurance benefits available under the IBM Group Life Insurance Plan are provided under MetLife group life insurance policies which, like most group insurance policies, contain certain exclusions, limitations and requirements for maintaining coverage in force. Any such exclusions, limitations and requirements will be described in the insurance certificate and/or the IBM Group Life Insurance Plan formal plan documents.