Life insurance that moves with you

All group life insurance plans give you a conversion option, and your employer’s life insurance plan may also include a portability option.

Conversion allows you to change (or “convert”) your group life insurance coverage to an individual policy that you personally own, while staying with the same insurance provider. This might be a good option if:

  • You leave your job and don’t want to deal with providing proof of medical history or applying for a new policy with a different insurance provider.
  • You want your coverage to have a cash value. When you convert from a group policy to an individual life insurance policy, your policy grows a cash value based on what you pay into it, and you can borrow against that cash value or take the cash value with you if you no longer want the policy.
  • You need permanent life insurance. Rather than having a policy that lasts for 5, 10, or 20 years, converting to a permanent policy will allow you to receive a pre-specified benefit amount in the event of your death for as long as you continue to pay the premium.

Converted policies are usually issued as permanent life insurance policies and are available if you retire, leave your job, reduce your hours, or reach an age when your group coverage may be reduced or eliminated.

A portability option lets you apply to take (or "port") your group coverage with you after your employment ends. It's usually offered as a term life insurance plan that continues for a specific period of time, so you don't have to renew your plan every few years. A "ported" policy may be a good choice if you:

  • want to take advantage of affordable group term rates,
  • do not need a product that has cash value, or
  • are not looking for permanent coverage.

To find out if your company offers life insurance for employees, check with your benefits administrator today. Remember to ask how you can take your life insurance with you.

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