The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
MetLife announced the availability of its new Voluntary Retiree Life insurance.
According to a release, this new group term life insurance is designed to provide a retiree-paid life insurance solution for employees who are entering retirement and throughout their retirement years.
"The number of baby boomers expected to retire in the next 15 years creates a big need-employees with life insurance provided through the workplace will be looking for ways to extend that insurance into retirement," says Stephen Pontecorvo, Vice President at MetLife. "In response to this need, MetLife has developed a plan specifically for retirees that provides convenient life insurance plan options as well as valuable benefits retirees are likely to appreciate."
Retirees and their spouses will have access to three plan options. The initial amounts for plan coverage options include up to $25,000 offered as guaranteed issue and up to $75,000 or $150,000 in coverage, both of which require medical evidence.
Additionally, the company said, the Voluntary Retiree Life product includes three features from MetLife Advantages, the company's suite of value-added services: face-to-face Will Preparation and face-to-face Estate Resolution Services provided by Hyatt Legal Plans and the Total Control Account, a safe and convenient life insurance settlement option. These features offer customers valued resources as they enter the retirement stage.
MetLife's offer stands apart in the market. The retiree plan is separate from that of plan participants who are still actively employed so rates for current employees are not impacted.
To help employers provide appropriate voluntary life coverage options to retirees, MetLife added that it will also provide full plan administration by: creating communication materials for enrollment; maintaining and managing all retiree and spouse records; maintaining all beneficiary information and preparing and delivering beneficiary claim packages; managing billing and providing MetLife's toll-free customer service support.
"We know that more than three quarters of employees we surveyed in MetLife's 12th Annual Employee Benefits Trend Study want a greater variety of benefits from which to choose, while 80 percent of those employees value benefits customized to their circumstance and age," says Pontecorvo. "By providing Voluntary Retiree Life insurance, our clients are able to give employees more benefit choices as they are entering retirement."
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