Post-Employment Life Insurance Coverage Options
If your IBM employee life insurance benefits will decrease or end soon, or you’re thinking about retirement, you have choices to make and time is critical. Portability, Conversion, and the Voluntary Retiree Life (VRL) program are options that may be available to you, depending on your circumstance.
Life has changed, the need to protect your family hasn't
You can get cost-effective life insurance coverage to protect those you care about most and the life you’re building for them today.
What you need to know
When you separate or retire from IBM, or you have a dependent that no longer qualifies, you will receive an informational packet in the mail from MetLife explaining the details of the options available to you. The options are all individual policies that would be paid for entirely by you, regardless of whether IBM paid for the corresponding coverage when you were an IBM employee. As part of a special employee financial education program, MetLife has arranged for specially-trained financial professionals from Barnum Financial Group (Barnum), answer your questions and provide you with information about continuing your group life insurance either before or after you receive the packet from MetLife. This might include identifying other lower-cost alternatives and assisting you with other financial decisions you may need to make at this time.
Portability and Conversion options are available to continue the MetLife OTL coverages upon separation from IBM by paying MetLife directly. The Portability feature provides a more affordable continuation option, but the cost is likely more than you are paying today. The terms and conditions of these Conversion and Portability policies are defined entirely by MetLife, rather than IBM, and may differ from the OTL policy and include coverage limitations and reduced coverage amounts, so be sure to read the policies carefully before choosing to continue coverage.
If you retire from IBM, you will also have the opportunity to enroll for Voluntary Retiree Life (VRL) insurance.
If you retired from IBM before January 1, 2015, your amount of IBM-provided Group Life Insurance did not change with the move to MetLife. No action was needed by you to maintain coverage. You are not eligible for the MetLife OTL or AD&D coverages. However, if your retiree GLI coverage is reducing due to you turning age 65, you will have the option to convert the difference between your original insurance amount and $5,000.
If your employment with IBM ends as a result of a resource action or Individual Separation Allowance Plan (ISAP), you will be able to continue your GLI based on your years of service as of the date your employment ends per the bullets below. You will have the opportunity to exercise your Portability and Conversion options after such time period ends.
- Less than 5 years……………………..................... 3 months
- 5 years or more, but less than 25 years......…6 months
- 25 years or more……………………………........... 12 months
If you retire as a result of a resource action or Individual Separation Allowance Plan (ISAP), you will not be considered a retired employee for the purposes of your GLI or OTL insurance until after the applicable time limit shown above. You will have the opportunity to exercise your Conversion option, your Portability option, or enroll for Voluntary Retiree Life (VRL) insurance after such time period ends.
What you need to do
Read the packet provided by MetLife carefully and weigh your options for continuing life insurance coverage post-employment.
You can call Barnum, for guidance on the options available to you. Here are some other things a Barnum financial professional can help you with:
- If you are leaving your current employer, do you plan on getting another job?
- If you promptly become re-employed, what are the types of benefits that will be provided by your next employer?
- If you choose not to reenter the workforce, what benefit coverages will you need?
- What is adequate protection for your other insurance needs?
Get the guidance you need to help make the right decisions for your situation.
Conversion
What is Conversion?
Conversion – If you are separating or retiring from IBM, your retiree GLI coverage is reducing due to turning age 65, or your dependent no longer qualifies for life insurance under the OTL, Conversion gives you an opportunity to continue your term life insurance with MetLife via an individual whole policy, without the need for a medical review. The rates will likely be higher than your current rates. Once enrolled, MetLife will mail you a policy and bill you directly. If you want, you always have the option to apply for any type of life insurance policy issued by another carrier. This may require medical questions, and such policies are not offered, insured or serviced by MetLife.
For IBM-provided GLI and term life insurance for yourself, the minimum and maximum amounts you can convert are subject to state variations. Typically, you have 31 days from the date coverage ends or is reduced to apply for Conversion by calling the 877 number on the Conversion/Portability Notice. If notice is provided late, please refer to your Conversion/Portability Notice for more details. Coverage will take effect 32 days after your group coverage ends.
For term life insurance for your spouse/domestic partner, the minimum and maximum amounts you can convert are subject to state variations. Typically, you have 31 days from the date coverage ends or is reduced to apply for Conversion by calling the 877 number on the Conversion/Portability Notice. If notice is provided late, please refer to your Conversion/Portability Notice for more details. Coverage will take effect 32 days after your group coverage ends.
For term life insurance for your child(ren), the minimum and maximum amounts you can convert are subject to state variations. Typically, you have 31 days from the date coverage ends or is reduced to apply for Conversion by calling the 877 number on the Conversion/Portability Notice. If notice is provided late, please refer to your Conversion/Portability Notice for more details. Coverage will take effect 32 days after your group coverage ends.
Conversion is not available on accidental death and dismemberment insurance (AD&D) for yourself, your spouse/domestic partner, and/or child(ren).
Portability
What is Portability?
Portability1 – If you are separating from IBM, Portability gives you an opportunity to continue your OTL coverage(s) with MetLife via a Group Term Life policy, without the need for a medical review. Competitive rates apply but will likely be higher than your current rates. If you apply for Portability, preferred rates are available if you answer medical questions and MetLife approves. Otherwise, you will be charged standard rates. Once enrolled, MetLife will mail you a portable certificate and your initial bill.
For term life insurance and AD&D insurance for yourself, you must have coverage of at least $10,000 up to a maximum of $2,000,000 to take advantage of this opportunity typically within 31 days from the date coverage ends or is reduced to apply for Portability by calling the number on the Conversion/Portability Notice. If notice is provided late, please refer to your Conversion/Portability Notice for more details. Coverage will take effect 32 days after your group coverage ends.
If you have more than $2,000,000 of coverage you will only be able to continue $2,000,000 under the Portability option. You can also enroll for higher amounts of term life coverage by completing a medical review. Generally, there is no minimum time for you to be covered by the plan before you can take advantage of the Portability feature.
For term life insurance and AD&D insurance for your spouse/domestic partner, you must have coverage of at least $10,000 up to a maximum of $250,000 to take advantage of this opportunity typically within 31 days from the date coverage ends or is reduced to apply for Conversion by calling the 877 number on the Conversion/Portability Notice. If notice is provided late, please refer to your Conversion/Portability Notice for more details. Coverage will take effect 32 days after your group coverage ends.
Your spouse/domestic partner can also enroll for higher amounts of term life coverage by completing a medical review, though increases, decreases and maximums are subject to state availability.
For term life insurance and AD&D insurance for your child(ren), you must have coverage of at least $10,000 up to a maximum of $25,000 to take advantage of this opportunity, typically within 31 days from the date coverage ends or is reduced due to your death, your retirement, or the child no longer being an eligible dependent.
Portability is not available on Group Life Insurance (GLI) provided by IBM.
Voluntary Retiree Life
What is Voluntary Retiree Life?
If you retired from IBM after January 1, 2015, you are not eligible for the MetLife OTL coverages. However, you may be eligible for MetLife’s Voluntary Retiree Life2 (VRL).
- If you retired from IBM between January 1, 2015 and December 31, 2018, you had the opportunity to enroll in Reducing Retiree Term Life insurance with Prudential. Effective January 1, 2019, that Life Insurance was transferred to MetLife as Voluntary Retiree Life2 (VRL). There were no changes to the coverage amount, cost of coverage, or beneficiary designations you had under your prior Prudential coverages.
- If you retire from IBM on January 1, 2019 or after, you are eligible to enroll in one of three of MetLife’s Voluntary Retiree Life2 (VRL);insurance options within 60 days of your retirement. Even if you already have life insurance, adding VRL coverage can provide you and your loved ones with additional protection. When you become eligible for this coverage, MetLife will send you an informational packet describing your options.
IBM-provided Group Life Insurance for pre-January 1, 2015 Retirees
If you retired from IBM before January 1, 2015, your amount of IBM-provided Group Life Insurance did not change with the move to MetLife. No action was needed by you to maintain coverage. You are not eligible for the MetLife OTL coverages.
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/domestic partner may have should be taken into consideration.
1 Conversion isn’t available on AD&D coverage. Conversion rates are based on your age at the time you convert.
2 To take advantage of this benefit, coverage of at least $10,000 must be elected. Increases, decreases, minimum and maximum coverage amounts are subject to state availability. Please contact your plan administrator or refer to your certificate for specific details.
3 This voluntary benefit is provided by MetLife. Your company does not sponsor, endorse or administer this benefit. This benefit does not constitute an ‘employee benefit plan’ under the Employee Retirement Act of 1974 (ERISA), as amended.
Nothing in these materials is intended to be advice for a particular situation or individual. Please consult with your own advisors for such advice. Like most group insurance policies, insurance policies offered by MetLife contain certain exclusions, exceptions, waiting periods, reductions, limitations and terms for keeping them in force. Please contact your benefits administrator or MetLife for costs and complete details. MetLife Group Term Life insurance and AD&D is issued by Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166 under Policy Form GPN99/G2130-S