Can you keep the coverage?
Yes, you can often keep the life insurance you had through an employer, but you must convert the group policy to an individual one within a limited time after leaving the company.
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Conversion option
Most group plans include a conversion clause that lets you purchase the same coverage without a medical exam, usually within 30‑90 days of termination. The premium will rise to reflect your age and the insurer's rates for individual policies.
Steps to take
- Contact the benefits administrator promptly to request the conversion form.
- Provide any required personal information and sign the agreement.
- Pay the first premium, which may be higher than the group rate.
Cost considerations
Individual premiums can be several times the group cost because they no longer benefit from the employer's bulk purchasing power. Compare quotes from other insurers to ensure you're getting a fair rate.
Alternatives if conversion isn't offered
If the plan lacks a conversion clause, you'll need to apply for a new individual policy, which typically requires a medical exam and may result in higher rates or limited coverage based on health status.
Key differences
| Feature | Group Policy | Converted Individual Policy |
|---|---|---|
| Premium cost | Employer‑subsidized, lower | Higher, age‑based |
| Medical underwriting | Usually none | Often required unless converted |
| Portability | Lost when employment ends | Retained for life |