When you leave your job — whether through resignation, layoff, or retirement — your employer-provided group life insurance typically ends, usually on your last day of employment or at the end of the month in which you leave. This means the death benefit protection you had through your employer's plan stops, potentially leaving your family without coverage. Understanding your options and acting quickly is important.
Most group life insurance plans offer two options for departing employees. The first is portability, which allows you to continue your group coverage as an individual within the group plan, maintaining similar rates. Not all plans offer portability, and the option typically must be elected within a specific window (often 31 days). Portable coverage may have limits on the amount you can continue and may increase in cost over time.
The second option is conversion, which allows you to convert your group coverage to an individual permanent life insurance policy (usually whole life or universal life) without a medical exam or health evaluation. Conversion must also be elected within a specific timeframe (typically 31 days). The converted policy's premiums are based on your current age and will be higher than the group rates, but the guarantee of coverage regardless of health status makes this option valuable for those with health concerns.
If neither portability nor conversion suits your needs, or if you want more flexible and potentially more affordable coverage, applying for a new individual life insurance policy on the open market is another option. If you are in good health, individual underwriting may yield competitive rates. The key is to avoid gaps in coverage — ideally, secure replacement coverage before your group coverage ends. A licensed agent in our network can help you evaluate all options and find the right coverage. All individual coverage is subject to underwriting approval by the issuing carrier.