Can anyone that's been RA'd tell me what happens with your IBM provided life insurance benefit, plus any extra amount you may have been paying for out of your paycheck? Does the life insurance company reach out to you to keep it after you're gone and give you rates? Are they competitive?
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@sib Can you share your RA package details? Were you retired or resigned?
I believe the answers in this thread are all different now in April 2020 since IBM terminated the GUL (Group Universal Life) plan with Prudential in 2019 and instead went with Metlife.
"..participants in the IBM plan have the ability to continue their coverage under the continuation provisions of the certificate although at a higher premium rate."
By higher premium rate, in my case, you could multiply the old monthly premium times 2.7 to calculate the new monthly premium. For example, if the old premium were $100 for 400,000 in coverage, the new monthly premium would be close to $270 per month.
There would not be any underwriting to go through; but these rates are much higher than the standard "B" insurance rates even for 10 year level term life insurance.
Good thread, thanks all
I resigned last year to take a new job outside IBM and had $700k in coverage through employee plan managed by Prudential. I have some health issues and was worried about the cost of new insurance. I called prudential and was able to keep my group policy. The rates will increase as I get older, just like at IBM, I think I went from paying about $120/month through IBM for the extra coverage to about $500/quarter directly to Prudential. You likely have a statement from Prudential with your coverage and a policy number, Call them and tell ask how you keep the coverage. You also have the ability to reduce the coverage. Prudential will just start billing you directly. I recall you have 3 or 6 months to make the change.
After your last date, you get Group Life Insurance (the base one that provides coverage of 1x to 3X your annual salary) at no cost for 3 months if you worked for 5 years or less, 6 months if you worked 5 to 25 years and 12 months if you worked for more than 25 years. Any additional coverage that you might have purchased on top of the GLI coverage, you need to talk to the insurance company so you can continue to pay out of your own pocket.
After the "no cost" GLI period expires, you will have no insurance. You better find another job that offers GLI or you will need to pay for all life insurance out of your own pocket at "competitive" personal premium rates (which are still higher than group rates).
I retired 5 years ago, at that point the IBM provided life insurance for active employees ended, but IBM continued to provide nominal coverage for retirees — $25k until age 65, $5k thereafter.
The optional insurance available to employees through Prudential GUL increased in cost significantly at retirement and was not competitive.
I was RA’d on 3/1 and was given the option to purchase life insurance at competitive rates. My IBM provided life insurance went away, but not sure if that is because I was retirement eligible. All benefit details will all come out in a large package from Fidelity who handles the RA benefits/off-boarding process. Fidelity is very good and efficient.