Group Universal Life Insurance
Group Universal Life Insurance on the ExxonMobil Life Insurance Program
Q. Is additional life insurance available?
A. Yes. A regular employee may elect additional life insurance of one to five times your annualized monthly benefit pay at group rates. If you enroll within 31 days of your first day of active employment, you can do so without evidence of insurability.
Beginning December 1, 2015, you may choose coverage equal to one, two, three, four, five, six, seven or eight times your annualized monthly benefit pay rounded to the next higher $1,000. Certain employees who participate in the Executive Life Insurance/Death Benefit Plan are limited to choosing up to three times their annualized monthly benefit pay. Employees who participate in Family Adjustment/Family Income have a maximum of five times their annualized monthly benefit pay. The maximum coverage available for all employees is $10,000,000.
As an active employee, if you have a pay change your coverage is based on your annualized monthly benefit pay beginning the first full month after the change, rather than effective with the pay change.
As a retiree, you may keep your Group Universal Life coverage after retirement (please refer to Options when you retire). However, if you retire on or before December 1, 2015, your coverage level is a maximum of five times your annualized monthly benefit pay up to a maximum of $10,000,000.
If your annualized monthly benefit pay is $88,250 and you choose three times coverage, the benefit amount is:
$88,250 x 3 = $264,750
rounded to the next higher $1,000 = $265,000
Enrollment and changes
You may enroll in, change or cancel your Group Universal Life Insurance at any time using ExxonMobil Benefits Web.
- Enroll within 31 days of your first day of active employment, your coverage is effective as soon as your enrollment is completed on ExxonMobil Benefits Web. However, payroll deductions may not begin until the first of the month following your election.
- Want to increase your insurance coverage or enroll after 31 days of employment, you must provide evidence of insurability and meet MetLife's underwriting requirements. The EOI form will be available through your enrollment action in ExxonMobil Benefits Web after you submit your change request. Your coverage becomes effective when your application is approved by MetLife. However, payroll deductions may not begin until the first of the month following Benefit Administration's receipt of the approval from MetLife.
- Lower your coverage, the change is effective the first of the month following the date your election is received by ExxonMobil Benefits Service Center.
- Want to cancel your insurance coverage, coverage and payroll deductions will continue through the end of month in which you completed your change request.
Your contributions are made through payroll deduction, annuity deduction or direct payment to MetLife. If you choose to suspend payroll or annuity deductions at any time, premiums will be automatically deducted from your cash accumulation fund until it is depleted; thereafter, MetLife will send you a monthly bill for the cost of coverage.
Life insurance rates
For employees, the monthly premiums per $1,000 of life insurance are based on age as shown in this chart:
|Under 30||$ 0.025|
For retirees the monthly premiums per $1,000 of life insurance are based on age as shown in this chart:
Retirees with a retirement date on or before December 1, 2015, who are age 70 and older, and employees who terminate as a regular employee without retiree status are no longer eligible for this coverage under the ExxonMobil Life Insurance Plan, but may continue this coverage directly with MetLife and at rates as determined by MetLife. Retirees with a retirement date after December 1, 2015, are eligible for this coverage under the ExxonMobil Life Insurance Plan until age 95.
- Bob is a 43 years old employee with an annualized monthly benefit pay of $76,500. He chooses Group Universal Life Insurance of three times coverage.
- $76,500 x 3 = $229,500,
rounded to $230,000 (230,000 divided by 1,000 = 230) x $0.063 = $14.49 monthly premium
- Maria is a 58 years old employee, with an annualized monthly benefit pay of $92,800. Chooses Group Universal Life Insurance of two times coverage.
- $92,800 x 2 = $185,600, rounded to $186,000
(186,000 divided by 1,000 = 186) x $0.313 = $58.22 monthly premium
- John is a 66 years old retiree with an annualized monthly benefit pay of $85,000. Current Group Universal Life insurance of one time coverage.
- $85,000 x 1 = $85,000
$85,000 divided by 1,000 = 85) x $1.475 = $125.38
- $85,000 x 1 = $85,000
Benefit amount and premium changes
Your benefit amount automatically changes the first of the month following the effective date of a pay change. When you have a birthday that puts you into a higher age bracket, the premium will increase the first of the month of your birthday. For example, if your birthday is July 23, your premium increases on July 1.
How the benefit is paid
The lump sum benefit is available to your beneficiary upon your death.Life insurance proceeds are deposited in an interest bearing account with the insurance company and the beneficiary has the right to withdraw the proceeds as needed. Contact MetLife to request information on additional payment options available to your beneficiary.
Benefits may be limited or denied if death results from a self-inflicted injury occurring within the first two years of enrolling in the Plan or increasing your level of coverage.
Accelerated benefit option
The Accelerated Benefits Option (ABO) protects you and your family from financial loss if you’re suffering from a terminal illness. Accelerated benefits may be payable if, as a result of an injury or illness, you are diagnosed as terminally ill with no more than six months to live. The benefit amount will generally be 80% of your GUL coverage up to a maximum of $500,000 (subject to a reduction for an outstanding cash accumulation fund loan, an administrative fee and a discount factor). The specific rules regarding your state of residence will be provided in the certificate of coverage issued to you by MetLife.
Accelerated Benefits will not be payable if:
- You have assigned your GUL insurance death benefit;
- All or a portion of your death benefit is to be paid to your former spouse as part of a divorce agreement;
- Your life expectancy is limited and you are expected to die within six months as the result of either attempted suicide or injuring yourself on purpose;
- Your insurance coverage amount is less than $10,000; or
- You are required by a government agency to request payment of Accelerated Benefits in order to apply for, obtain or keep a government benefit or entitlement, such as payment for long-term care in a skilled nursing facility.
The ABO is payable only once, and will reduce your GUL insurance coverage by the amount you receive in the payout. When you die, your beneficiary will receive the remaining balance of your GUL insurance benefit.
Cash accumulation fund
GUL is a flexible life insurance option that allows you to contribute different levels of premium over time to best meet your insurance and other financial needs. You can choose to pay only the minimum necessary to cover the current cost of insurance, or you can choose to add extra premium to a cash accumulation fund. These additional premiums are subject to certain maximums which are communicated by MetLife in the coverage certificate mailed to participants.
However, they permit you to take advantage of the investment benefits of GUL, for example, helping to fund future needs like college education expenses and retirement.
There are tax advantages associated with making after-tax contributions to the GUL cash accumulation fund:
- Contributions to the GUL cash accumulation fund earn a minimum 3% rate of interest that is guaranteed annually by MetLife.
- Money in the GUL cash accumulation fund earns a competitive rate of interest on a tax-deferred basis. All contributions made to the cash fund (whether cost of insurance amounts or extra dollar amounts) are included in the GUL certificate's cost basis. If the amount of money withdrawn exceeds the cost basis (the money paid into the GUL certificate), the owner will have a taxable gain. Federal income tax is calculated on the taxable gain amount and a 1099 Form is issued.
- At the insured's death, money in the cash fund can automatically be added to the life insurance coverage amount, possibly increasing the total benefit to the beneficiary.
Participants have a choice of how to contribute to their GUL cash fund:
- Regular contributions through payroll deduction; or
- Lump sum contributions at any time (minimum of $100) directly to MetLife.
Participants have access to the money in their cash fund - for any reason - through loans and withdrawals.
Withdrawals and loans
You may withdraw all or part of the cash in your fund, or you can take a loan on your fund for any reason. Withdrawals and loans are subject to the following:
- If you choose to withdraw a portion of your fund, it must be at least $200.
- The maximum withdrawal is the entire amount of money in the cash fund (less any outstanding loans).
- Withdrawals are limited to one per month.
- The minimum loan amount is $200.
- You may take only one loan per year, and have only one outstanding loan at a time.
- The interest rate on a loan is based on Moody's Corporate Bond Index, set back two months. The money you borrow continues to earn interest at 2% less than the loan interest charge rate.
- Loans can only be re-paid directly to MetLife, and not through payroll deductions.
- There is no time limit on loan repayment.
- Withdrawals and loans generally will be processed by MetLife within 10 business days. There may be situations where processing takes longer.
Your contributions to the cash accumulation fund are subject to limits set by the Internal Revenue Code. Exceeding these limits could affect the tax treatment of your contributions. If this happens, MetLife will notify you and suggest alternatives which are completely separate from this Plan and are not sponsored, endorsed or recommended by ExxonMobil. The alternatives separate from this Program have varying degrees of risk and are governed entirely by agreements between you and MetLife.
- Let’s look at Bob again; 43 years old with annualized monthly benefit pay of $76,500. Group Universal Life Insurance election of three times coverage results in monthly premium of $14.49.
- In addition, Bob elects an additional premium of $100 per month into the cash accumulation fund through ExxonMobil Benefits web . As a result, $114.49 will be deducted from Bob’s paycheck each month and deposited into the cash accumulation fund. The monthly deduction includes $14.49 which will be used to pay premiums for GUL coverage and $100 which will be saved in the cash accumulation fund.
If you have any questions regarding the cash accumulation fund, withdrawals and loans, or contribution limits, contact MetLife (see Information Sources).
Canceling your coverage
Employees may cancel their coverage through the ExxonMobil Benefits web by electing to waive their coverage. Any amount remaining in your cash accumulation fund (less any outstanding loans) will be returned to you. At this time, you may be responsible for paying income tax (if any) on the tax-deferred interest portion of your cash accumulation fund. For this reason, you may want to consult with your personal tax advisor first. There are no fees associated with canceling your coverage.
Options when you retire
In addition to withdrawals and loans, you have these additional options when you retire:
- Choose to Continue Your Life Coverage — You may continue to be covered under ExxonMobil Group Universal Life Insurance until age 95, however, if your retirement date is on or before December 1, 2015, your coverage will end at age 70. After you reach age 70, if you are no longer eligible to participate in the Group Universal Life option your coverage will automatically continue directly with MetLife, with premiums determined by MetLife, and your benefits will be reduced to the lesser of the current amount of the insurance (i.e., multiple of pay) or five times the value of the cash accumulation fund (minimum of $20,000). If you receive a monthly pension, your premiums are automatically deducted. If you receive no pension payment, you are billed directly by MetLife. If you do not send a payment, your premiums will be deducted from your cash accumulation fund until the fund is depleted. There is a nominal administration fee for direct billing by MetLife.
At age 95, the insurance coverage with MetLife terminates, and you will need to select a distribution option for your cash accumulation fund. MetLife will provide you with these options.
- Elect a fixed lump sum amount – As a retiree, in addition to reducing coverage amount to a lower annualized monthly benefits pay multiplier, you can elect a fixed lump sum coverage amount of $50,000; $25,000 or $10,000
- Elect an Annuity — You can elect an annuity using all of the money in your cash accumulation fund. The minimum contribution amount is $10,000. A variety of payout options is available, including joint and survivor benefits and a life income option. Life income products provide payments for your life with a guaranteed minimum return of at least what you paid in premium. Note that when you elect an annuity, your Group Universal Life Insurance coverage ends.
- Paid-up Insurance — This is insurance that you may purchase with your cash accumulation fund. It provides a benefit (minimum of $10,000) to your beneficiary when you die. Note that when you elect paid-up insurance, your Group Universal Life Insurance coverage ends.
- Cancel Your Coverage — You may cancel your coverage through the ExxonMobil Benefits web by electing to waive your coverage. Retirees who elect to cancel coverage cannot re-enroll.
Options when you terminate employment
If you terminate employment as a regular employee, without becoming a retiree, you have all of the options described in the previous section. You will be contacted by MetLife regarding continuation of your coverage as a portable policy. If you choose to continue insurance with MetLife, your premiums are determined and billed by MetLife.
When coverage ends
Unless you have chosen to continue your coverage as described in Options when you retire, your Group Universal Life Insurance through ExxonMobil ends on the earliest of the following dates:
- The end of the month in which you terminate your regular employment with the company without being a retiree.
- The end of the month in which you surrender (cancel) your coverage.
- The first of the month in which a retiree whose retirement date is on or before December 1, 2015, reaches age 70.
- The first of the month in which a retiree whose retirement date is after December 1, 2015, reaches age 95.
- When you become a suspended retiree.
You may continue coverage at rates determined by MetLife on a direct-billed basis when your coverage ends as an ExxonMobil participant.