Terminating employees may still have a need for Life Insurance. The Conversion Privilege allows employees to obtain individual insurance at a reasonable cost without having to submit Evidence of Insurability. An employee has 31 days following termination of employment, or after Basic Life, Optional or Spousal Optional Life Insurance coverage ends or reduces, in which to convert their existing coverage(s) to an individual Life Insurance policy with the same Insurer. Evidence of Insurability is not required.
- For employees under age 65, the maximum amount available to be converted is the lesser of the total terminating group insurance coverage, or $200,000. Dependents may convert the lesser of the current amount of Spousal Optional Life Insurance, or $200,000.
- For employees age 65 and over, the maximum amount available to convert is $25,000.
- Optional and Spousal Optional Life Insurance cannot be converted after age 65.
- The premium for the individual policy will be based on the Insurer’s individual policy rates in effect on the date of the application.
Advise the employee (and spouse) of their right to apply and if the employee wishes to pursue conversion. If the terminating member would like more information, or to apply for the conversion privilege, please contact your Client Service Coordinator as soon as possible.