Content Overview
- Summary
- What Is The Right To Convert?
- How Much Can I Convert?
- How To Determine Your Conversion Rights
- Should You Convert Your Group Life Insurance?
- How To Convert Your Life Insurance Coverage
- What If I Have Federal Employee's Group Life Insurance, Veteran's Group Life Insurance or Servicemen's Group Life Insurance?
- What to Do If You Weren't Given An Opportunity to Convert Coverage
Converting Group Life Insurance
What Is The Right To Convert?
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If any portion of your group life insurance ends or is cancelled, you will almost always be offered an opportunity to replace some or all of the insurance with an individual policy issued by the same insurance company (the right to "convert" to an individual policy.) You do not have to prove you are healthy in order to convert your group insurance because no health questions will be asked.
Typically the policy to which you will have a right to convert will be a whole life policy, rather than a less expensive term policy.
In some states, you must be offered a term policy for the first year, after which the policy becomes whole life. The advantage to you in this scenario is that your premiums for the first year will be lower.
Note: if your employer contributed to the cost of your coverage, your premiums could increase once you leave your employer. If this is a burden, you can decrease the amount of the insurance which will lower your premium. If an annual premium is difficult for you to pay, ask whether you can make a monthly or quarterly premium payment.
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