Gm Retiree Benefits: Life Insurance Coverage Explained

General Motors offers a range of benefits to its retirees, including access to health care, life insurance, savings, and pension information. The company provides a dedicated website, GM Retiree.com, where retirees can register and access information about their benefits. In addition, General Motors offers a Group Variable Universal Life (GVUL) insurance plan through MetLife for its salaried employees and retirees, with rates subject to annual review and adjustment. The bankruptcy of General Motors Corporation in 2008 resulted in the cancellation of health insurance coverage for many retirees, but those over 65 were offered a guaranteed issue period for Medicare supplement and prescription Part D coverage.

GM Retiree Health Care Plan

The General Motors (GM) Retiree Health Care Plan offers a range of benefits to retired employees. These benefits include access to health care, life insurance, savings, and pension information. Retired salaried employees/retirees have been provided with Group Variable Universal Life (GVUL) insurance through MetLife since 2010. Life insurance rates are reviewed annually and are subject to change based on claims experience.

Following the bankruptcy of General Motors Corporation, the health insurance coverage for retirees was cancelled effective January 1, 2008. However, retirees over the age of 65 are eligible for a "guaranteed issue" period for Medicare supplement and prescriptions under Part D coverage. Most retired employees use Medicare as their primary coverage, with their GM health insurance serving as supplemental coverage. This involuntary loss of the GM plan allows those aged 65 and above to enrol in a Medicare supplement plan without answering health questions.

There are several insurance options available to GM retirees, including Medicare supplements, Part D coverage, Medicare Advantage plans, dental, and/or vision insurance. Many retirees may opt for the straightforward, no-network coverage offered by a Medigap plan. It is recommended that retirees work with knowledgeable agents or brokers to discuss their specific options and make informed decisions based on their individual needs and circumstances.

Group Variable Universal Life (GVUL) insurance

GVUL insurance is provided by MetLife and has been available to General Motors salaried employees and retirees since 2010. The rates are subject to annual review and adjustment based on claims experience.

One key advantage of GVUL insurance is that it allows the policyholder to pay additional premiums above the cost of insurance into a range of investment options. It also offers an interest-bearing fixed account with a guaranteed minimum interest rate. Policyholders can access their cash value through loans and withdrawals without early withdrawal penalties or surrender charges. Furthermore, GVUL insurance provides the convenience of starting, stopping, or making lump-sum additional premium payments at any time during the year.

However, it is important to note that there are risks associated with GVUL insurance. The cash value allocated to the variable investment options is subject to market fluctuations, which means it may be worth more or less than the original investment upon withdrawal. Additionally, there may be administrative fees associated with withdrawals, and outstanding loan amounts can impact the certificate values and benefits.

Medicare Supplement Plans

The bankruptcy of General Motors Corporation in 2008 resulted in the cancellation of health insurance coverage for many retirees. However, there are still several options available to former employees, including Medicare Supplement Plans.

Most retired General Motors employees over the age of 65 use Medicare as their primary coverage, with their GM health insurance serving as supplemental coverage. Due to the involuntary loss of the GM plan, retirees over 65 can now enroll in a Medicare supplement plan without answering any health questions. There are various plans available, including Plans C, F, G, and J. It is important to note that Plan J requires medical underwriting if the insured has previously enrolled in Medicare Part B.

In addition to a Medicare Supplement Plan, retirees will also need to choose a prescription drug plan, such as Part D. These plans typically range from $20 to $45 per month, excluding co-payment amounts for prescriptions, which are organised into different tiers.

Another option for retirees is to enrol in a Medicare Advantage plan instead of a Medicare Supplement Plan and Part D. These plans are offered by private insurance companies and often have low or no premiums, but they may have extensive co-payment amounts. It is important to note that opting out of a Medicare Advantage plan after enrolling may affect future eligibility for Medicare Supplement Plans.

Dental and vision insurance are also available to General Motors retirees. These plans typically have no underwriting, and it is recommended to enrol sooner rather than later due to waiting periods before major services are covered.

To summarise, while the bankruptcy of General Motors led to changes in health insurance coverage for retirees, there are still a variety of options available, including Medicare Supplement Plans, Medicare Advantage plans, and dental and vision insurance. Working with a knowledgeable agent can help retirees navigate these options and make informed decisions about their healthcare coverage.

Dental and Vision Insurance

General Motors retirees have access to dental and vision insurance plans to supplement their healthcare coverage. These plans are optional and can be purchased separately from their primary health insurance.

Dental insurance plans typically offered by General Motors include individual and family options, with a waiting period before covering major services. It is advisable to enrol sooner rather than later to take advantage of the coverage during the waiting period.

Vision insurance plans are also available, providing coverage for vision-related expenses such as eye exams, glasses, and contact lenses. Like dental insurance, vision insurance is separate from primary health insurance and can be purchased additionally.

The GM Alumni website provides a one-stop shop for retirees to review and manage their benefits, including healthcare, life insurance, savings, and pension information. This website also offers vehicle purchase discounts and easy access to benefit information.

Additionally, retirees can take advantage of the My GM Rewards program, which allows them to earn points for various activities, such as paid dealer services, signing up for connected services, and purchasing or leasing a new vehicle. These points can then be redeemed for accessories and services.

To stay informed about their benefits, General Motors retirees can also refer to the GM Retiree website (GMRetiree.com) and seek financial planning services from experts familiar with GM packages to make the most of their retiree entitlements.

Life insurance rates and reviews

Life insurance rates vary depending on several factors, including age, gender, health, and lifestyle choices. The type of policy and coverage amount will also impact the cost. Here is an overview of the factors that affect life insurance rates and reviews of some popular insurance providers.

Factors Affecting Life Insurance Rates:

• Age: Younger individuals generally pay lower premiums as they have a higher life expectancy.
• Gender: Women tend to have lower rates than men due to higher life expectancy.
• Smoking Status: Smokers often pay higher premiums due to increased health risks.
• Health: Pre-existing conditions, blood pressure, cholesterol, and weight can impact rates.
• Family Medical History: A history of serious health conditions in your family may result in higher premiums.
• Driving Record: DUI or major traffic violations can lead to higher rates.
• Occupation and Lifestyle: Hazardous jobs or risky activities may increase premiums.

Types of Life Insurance:

There are two main types of life insurance:

• Term Life Insurance: Covers a set period, such as 10 or 20 years, and is generally cheaper.
• Permanent Life Insurance: Lasts a lifetime and includes a cash value component, making it more expensive.

Reviews of Popular Life Insurance Providers:

• Nationwide: Offers term, whole, and universal policies. Monthly costs for a 35-year-old non-smoker with $1 million coverage are approximately $37.36 for women and $46.41 for men.
• Pacific Life: Provides term and universal policies. Monthly rates for the same coverage are around $47.43 for women and $62.73 for men.
• State Farm: Offers term, whole, and universal coverage. Monthly costs are about $53.99 for women and $67.89 for men with the same coverage.
• Guardian Life: Provides term, whole, and universal policies. Monthly rates for women are approximately $57.00, and for men, they are around $65.00.
• Protective: Offers term, whole, universal, and variable universal coverage. Monthly costs for a 35-year-old non-smoker with $1 million coverage are about $54.61 for women and $70.83 for men.

It is important to note that life insurance rates can vary across different providers, and it is always recommended to compare quotes from multiple insurers to find the best rates and coverage for your specific needs. Additionally, Group Variable Universal Life (GVUL) insurance is provided to General Motors' salaried employees/retirees through MetLife.

Frequently asked questions