Alcoa announced that it would discontinue its life insurance policy for retirees on December 31, 2019. However, the company is providing a minimal one-time discretionary cash payment to help offset the cost of other coverage.
Retirees who did accept their minimum payment before February 29, 2020, automatically waived any claims for life insurance coverage from the company.
So, if you are reading this now, you have already missed this cutoff date, and this article will tell you what you need to do after your policy is canceled.
FOR EASIER NAVIGATION:
- What Happened to Alcoa Retiree Life Insurance?
- What Are The Options Given To Alcoa Retirees’ Life Insurance?
- What Is Burial Life Insurance For Alcoa Retirees?
- Requirements To Qualify For Retiree Burial Insurance
- How To Apply For Retiree Burial Insurance
- How Can Funeral Funds Help Me?
What Happened To Alcoa Retiree Life Insurance?
Alcoa announced on December 4, 2019, that the company is ending the life insurance coverage for its 8,900 retirees on December 31, 2019.
This move by the eighth-largest aluminum producer is part of a larger strategy for Aluminum Company of America (ALCOA) to cut its retirement liabilities by about $190 million.
Alcoa Corporation sent certified letters to their salaried retirees, informing them that the company is canceling the life insurance policies promised to them when they retired after more than 30 years of service.
The life insurance termination included coverage on spouses and voluntary life insurance policy, additional voluntary life insurance policy, and supplemental life insurance policy.
Alcoa provided a one-time, discretionary cash payment totaling $15 million to those affected. They can use this cash payment for any purpose, including finding alternative insurance.
This discretionary payment was taxable, and the company even enclosed a tax form for the retirees to file. One retiree stated that his insurance policy is valued at $13,000, but he received a check for $2,750, roughly 20% of his coverage amount.
The check must have been presented for payment by February 29, 2020. By presenting the check for payment, each retiree waives any claims for life insurance coverage from the company.
If the retiree does not agree with the waiver, he should not deposit, endorse, or cash the check. If a retiree does not cash this check, the planned termination of coverage occurs.
The company also enclosed information on coverage conversion options to MetLife. MetLife offers the retiree to convert a portion of their terminated coverage on a guaranteed issue basis to an individual policy.
The application for coverage has a deadline of January 31, 2020. This change does not apply to MetLife Group Universal Life policy being paid by the retirees through a pension deduction or directly to MetLife.
Basic, optional, and dependent life coverage can be converted to an individual whole life insurance policy without providing evidence of insurability.
Some Alcoa retirees gathered to fight the termination of their company-provided life insurance. They filed a class-action lawsuit in U.S. District Court led by local retirees Charles Wyatt, Martin Ellison, and Edmond Butch, along with United Steelworkers and other unions.
They argued that dropping the life insurance benefit violates Alcoa’s labor agreement with the United Steelworkers and other unions.
The application for life insurance conversion ended on January 31, 2020.
If you have questions about this policy change, call Funeral Funds of America at (888) 862-9456.
What Are The Options Given To Alcoa Retirees’ Life Insurance?
If you are reading this article now, you could have taken the discretionary cash payment or converted a portion of your coverage to an individual policy through MetLife. However, the application for coverage conversion ended on January 31, 2020.
This change does not apply to MetLife Group Universal Life policy being paid by the retirees through a pension deduction or directly to MetLife.
Your best option at this point is to allow a company like Funeral Funds of America to search out the lowest rates you qualify for at your current age and health.
What Is Burial Life Insurance For Alcoa Retirees?
Burial life insurance for Alcoa retirees is similar to other forms of life insurance. It provides a death benefit when the insured passes away and has a death benefit that ranges between $2,000 and $25,000.
Some of the benefits of burial insurance for Alcoa retirees include:
- Easy to qualify – you just need to answer a few health questions
- No medical exam is required – you don’t need to submit blood and urine samples.
- Quick application process – you can apply over the phone or online
- Fixed premium – premium will never go up
- Level death benefit – death benefit will never decrease
- Cash value accumulation – cash value accumulates over time
Requirements To Qualify For Retiree Burial Insurance
- Age – Every life insurance company has its age requirement, but most whole life insurance companies offer this plan to applicants who are 50 to 85 years old.
- Ability to enter into a legal contract –You need to possess the mental capacity to enter into a legal agreement.
- State availability – Not every life insurance company offers coverage in every state.
It’s very convenient, and you can get approved 100% over the phone with companies like Funeral Funds of America!
How To Apply For Retiree Burial Insurance
STEP 1 – Work with a qualified life insurance agent from Funeral Funds. We will help you compare policies and rates from the top life insurance companies that offer burial insurance for Alcoa retirees.
STEP 2 – Fill out an application form over the phone or internet. The application will ask you some basic questions about yourself, like your name, address, date of birth, gender, etc. The life insurance company will use the information on the application to decide whether or not to approve your policy and what rate to charge you.
STEP 3 – Make your first payment. You can do this by setting up automatic payments from your bank account. Once the life insurance company receives your payment, your policy will be active and you will be covered!
How Can Funeral Funds Help Me?
Finding a policy if you’re an Alcoa retiree needn’t be frustrating; working with an independent agency like Funeral Funds will make the process easier and quicker.
We will work with you to find the plan that fits your financial requirements and budget.
We work with many A+ rated insurance carriers that specialize in covering high-risk clients like you. We will search all those companies to get the best rate. We will match you up with the best burial insurance company with the best rate.
If you are looking for funeral insurance for Alcoa retirees, burial insurance for Alcoa retirees, or life insurance for Alcoa retirees, fill out our quote form on this page or call us at 888) 862-9456, and we can give you an accurate quote.