Leaving a group plan as a result of a termination in your employment, retirement, or simply because you found another job with another employer can be very stressful at the best of times…..but even more so if your benefit program is expiring.

All group plans offer you the opportunity to convert the whole or part of your life insurance coverage to a form of permanent insurance within 31 days of your termination without you having to provide any form of medical evidence of insurability. While that is a great opportunity for those who cannot pass the medical evidence requirements requested by an insurance company when applying for life insurance, just the opposite holds true for those that are healthy.  

In simple terms, since the insurance company is forced to continue your life insurance coverage despite the fact that you may be considerably older or in poor health, they agree to do so at a price schedule that is not their most competitive. Thus, if you are in reasonably good health, it is advisable to enter the insurance market and replace your coverage with a new policy. In most cases the coverage and pricing will both be more attractive.

Unfortunately, the conversion option applies only to your life insurance coverage. It does not apply to other benefits such as disability, health, dental, vision, etc. To replace those benefits you are normally at the mercy of the insurance companies and their medical underwriting requirements.

Within the past ten years a number of insurance companies have seen this as a sales opportunity. They now offer product packages designed to replace all or part of your existing group benefits that can be purchased within 30 to 60 days of leaving your employment either without a medical or requiring a limited health questionnaire.