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.
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Enrollment Details
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*.
*Exception: During Annual Enrollment (in the fall of each year) only, IBMers who are currently enrolled in OTL for themselves can increase their OTL insurance by one (1) level of coverage, up to the lesser of three (3) times annual base pay or $750,000, without having to complete a medical review.
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.
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 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 |
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.
Please visit the FAQ section for more information on the Optional Term Life (OTL) coverages.
1 All applications for coverage are subject to review and approval by MetLife. If you choose to apply for increased coverage, the increase may be subject to underwriting. MetLife will review your information and evaluate 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. Coverage will be effective in accordance with the applicable policy and certificate after approval by MetLife. Only applicants who reside in a US state, the District of Columbia, or Guam, Northern Mariana Islands, Puerto Rico, or US Virgin Islands are allowed to complete their SOH form online (where available). Otherwise, applicants will be provided with a paper SOH form. Individuals residing outside of the US or in certain US territories must be on US payroll and be approved by MetLife before being provided with an SOH form.
2 This enrollment opportunity only applies to employees 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 TELUS Health. TELUS Health is not an affiliate of MetLife, and the services TELUS Health provides are separate and apart from the insurance provided by MetLife. TELUS Health 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 to the next higher $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 to the next higher $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.