Burial life insurance for Alcoa retirees is now needed because 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 producer of aluminum 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 includes coverage on spouses and voluntary life insurance policy, additional voluntary life insurance policy, and supplemental life insurance policy.
Alcoa will provide 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.
The discretionary payment is taxable, and the company even enclosed a tax form for the retirees to file. One retiree said 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 be presented for payment on 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 will still push through.
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.
The premium for the new policy will be set at MetLife’s standard rate for the amount of coverage for the conversion and age of the applicant. Retirees may not apply for more than the amount of life insurance they had under the terminated life insurance policy.
Some Alcoa retirees did gather together 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 ends on January 31, 2020. If you’re an Alcoa retiree looking for burial insurance to cover your final expenses, keep reading. We work with the best life insurance companies that cater to retirees looking for affordable final expense insurance coverage.
In this article, we will explore the different burial insurance options for Alcoa Retirees to help you compare different plans and get the best deal.
WHAT IS BURIAL LIFE INSURANCE FOR ALCOA RETIREES?
Now that your company provided life insurance was terminated, you need to convert your policy or look into purchasing coverage on your own.
It is recommended that burial insurance for Alcoa retirees be whole life insurance with lifetime coverage. There will be no medical exams with these plans, and Alcoa retirees with some health issues can still qualify.
Burial life insurance for Alcoa retirees is similar to other forms of life insurance. It provides a death benefit when the insured passes away. Its only difference with traditional life insurance is that it has a modest death benefit that ranges between $2,000 and $50,000.
BENEFITS OF WHOLE LIFE BURIAL INSURANCE
Easy to qualify – application for burial insurance is pretty straightforward. You only need to answer a few health questions. The underwriting is lenient for health issues that come with age, such as high blood pressure, high cholesterol, diabetes, and past heart problems.
No medical exam required – burial life insurance for Alcoa retirees does not require a medical exam. You don’t need to submit blood and urine samples either.
Quick application process – the application process is much faster because there is no medical exam. You don’t have to wait a few weeks to a month to get your policy. You can get life insurance coverage within a few minutes to a couple of days.
Fixed premium – one of the great benefits of burial insurance for Alcoa retirees, is that the monthly premium is fixed and guaranteed never to increase because of age. Your premium is locked at your application age, and it will remain the same for the rest of your life.
Level death benefit – the death benefit is fixed and guaranteed never to decrease when you pass away. Your assigned beneficiary will receive the full face amount of your policy.
The policy never expires at age 80 – this type of burial insurance is a whole life insurance policy that will last a lifetime. It will not expire when you reach 80 years old like term life insurance. Your plan will never expire as long as you keep paying your premiums on time.
Not cancellable – your policy will not cancel because of age or worsening health conditions. You remain covered for the rest of your life as long as you keep paying the premiums.
Cash value accumulation – burial insurance comes with a cash value component that accumulates over time. The accumulated cash value can be used to pay your premiums, or you can borrow against it if you have an emergency.
BURIAL INSURANCE OPTIONS FOR ALCOA RETIREES
OPTION #1: LEVEL DEATH BENEFIT
Simplified issue whole life insurance for Alcoa retirees is a burial insurance policy with a level death benefit, first-day coverage, and no waiting period.
You can purchase it if you are between 50 to 85 years old. You don’t have to take a medical exam, and you only have to answer a few health questions.
The underwriting process is simple compared with traditional life insurance. The company will only look at your answers to the health questions to get an overview of your health.
They will also conduct a prescription check and MIB check to verify your answers. Health issues like high cholesterol, high blood pressure, and diabetes are readily accepted.
The application process is quick because there is no medical exam. You can get instant approval over the phone, and you don’t have to wait 3-8 weeks to get your application approved.
Typical questions asked when applying for a level death benefit plan
- Do you use tobacco products?
- Are you currently residing in a hospital or nursing facility?
- Do you have a chronic or terminal illness?
- Do you have HIV or AIDS?
You will typically see these health questions when you apply for a level death benefit policy. Some companies will ask more questions, and the wording may be different, but it has fewer health questions than fully underwritten policies.
If you’re a smoker, you will still get coverage, but your premium will be a little expensive.
Answering yes to the remaining three health questions may cause your application to be rejected. If that’s your case, you still have one option, and that is to get a guaranteed issue life insurance.
You may not qualify for a level death benefit plan if:
- You’ve been diagnosed and having treatment for a terminal illness like cancer or kidney failure.
- You need supplemental oxygen because of COPD or any lung disease.
- You have severe cognitive impairments like dementia or Alzheimer’s disease.
- You’re in a nursing home or assisted living facility.
- You have impaired mobility, and you need a wheelchair.
- You need assistance with ADL – activities of daily living.
OPTION #2: GUARANTEED ISSUE BURIAL INSURANCE
Guaranteed acceptance or guaranteed issue (GI) burial insurance requires no medical exam and health questions on the application.
Most Alcoa retirees with health issues will qualify for this plan. GI policy ensures approval regardless of your health.
Health Issues that only qualify for guaranteed issue burial insurance:
- Terminal illness (your life expectancy is 24 months or less)
- You have cancer within the last 24 months
- Diagnosed with AIDS or HIV
- Alzheimer’s or dementia
- Heart attack within the previous 12 months
- Angina (chest pain) within the previous 12 months
- Had a heart surgery within the last 12 months
- A circulatory surgery within the last 12 months
- End-stage kidney disease requiring dialysis
- Oxygen use (only okay for sleep apnea)
- Congestive heart failure (CHF)
- Full-blown stroke (TIA mini-strokes do not count) within the last 12 months
- Amputation due to diabetes
- Diabetic coma or insulin shock or within the previous 24 months
- Been recommended to have or had an organ transplant
- Confined to a wheelchair or bed because of chronic illness
- Currently in the hospital, nursing home, skilled nursing facility, or hospice care
- Needing help with activities of daily living such as eating, bathing, dressing, transferring and continence
- Taking treatment for alcohol or drug abuse within the last 24 months
- High-risk hobbies and occupations
- Multiple DUI or moving violations
If you are dealing with any of these issues, the life insurance companies will consider you higher-risk, and you will not qualify for a level death benefit plan.
Guaranteed issue burial insurance with no health questions is your best option for insurance coverage if you have severe health problems.
How does guaranteed issue burial insurance work?
Guaranteed issue whole life insurance comes with a graded death benefit. The insurance companies include a waiting period that lasts from two to three years depending on the company.
NOTE: DO NOT BUY a policy with a 3-year waiting period! These policies are expensive, unnecessary, and are the worst types of policies on the face of this earth!
The graded death benefit applies to natural causes of death. If you die during the waiting period due to an illness or any reason other than an accident, your beneficiary will only get all the premiums you’ve paid plus 10% interest.
If you die from an accident, your beneficiary will receive a 100% death benefit even during the waiting period. After the waiting period, the company will pay the full death benefit for any reason of death.
REQUIREMENTS TO QUALIFY FOR GUARANTEED ISSUE BURIAL INSURANCE
Every life insurance company has their age requirement, but most guaranteed issue whole life insurance 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 to be able to get a guaranteed issue life insurance. Having a severe cognitive impairment like dementia or Alzheimer’s disease will prevent you from giving legal consent; thus the company will reject your application.
Not every life insurance company is licensed in every state. Some companies do not offer their guaranteed issue plans in some states.
Make sure the company you are applying for has guaranteed issue life insurance policy available in your state.
Most guaranteed issue life insurance provides only requires your age, gender, state of residence, and whether or not you are using tobacco products.
It’s as simple as that, there’s nothing more when applying for burial insurance coverage. It’s very convenient and you can get approved 100% over the phone these days!
COMMONLY ADVERTISED GUARANTEED ISSUE LIFE INSURANCE IN TV AND MAGAZINES TO AVOID
Increasing premium – many of these burial insurance companies seen on TV offer premium increase every five years. Beware because these are term life insurance, which is marketed as burial insurance for retirees.
A real guaranteed acceptance whole life insurance has a fixed premium throughout the life of the policy.
Policy termination after age 80 – read the fine print. Some policies terminate when you reach 80 years old. Guaranteed acceptance final expense insurance is a whole life insurance policy that lasts a lifetime.
3-year waiting period – Avoid these GI plans at all costs. These policies are expensive, unnecessary, and are the worst types of policies on the face of this earth!
The best-guaranteed issue whole life insurance only has a two-year waiting period. It is important to work with an independent life insurance agency that will prevent you from being led into agreeing to buy a guaranteed issue burial insurance with a 3-year waiting period.
The best-guaranteed issue burial insurance will not have you wait more than two years to have full coverage.
We work with companies that offer full coverage after two years. This is the shortest period possible before you get 100% coverage. You don’t have to wait longer than that.
HOW CAN FUNERAL FUNDS HELP ME?
Trying to find a policy if you’re an Alcoa retiree needn’t be a frustrating process; working with an independent agency like Funeral Funds will make the process easier and quicker.
If you have a health history or pre-existing condition, let us help you; we will work with you side by side to find a plan that fits your needs.
We will work with you every step of the way to find the plan that fits your financial requirements and budget. You don’t have to waste your precious time anymore, searching for multiple insurance companies because we will do the dirty work for you.
We will shop your case to different insurance carriers and get you the best price.
We work with many A+ rated insurance carriers that specialized 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 that gives the best rate.
We will assist you in securing the coverage you need at a rate you can afford so if you are looking for funeral insurance for Alcoa retirees, or 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.