Portability generally keeps a group-related product
A portability privilege, where available, may let an eligible employee continue certain group term coverage after employment. Eligibility, maximum amounts, premium changes and evidence-of-insurability requirements vary. Coverage can terminate under some circumstances, so ask whether this is a permanent independent policy or still governed by group terms.
Conversion changes the type of policy
A conversion privilege may permit a move from group coverage to an individual policy, sometimes of a different product type and premium structure. That can matter when your health has changed, but the offered policy may be more expensive than new individually underwritten coverage. Do not describe conversion as a free extension of the existing group term policy.
Why the deadline matters
Your certificate of coverage or benefits administrator should identify deadlines and application procedures. The length of the election window and the effective date are plan-specific. Ask what happens if you apply for a new policy but it is not issued before employer coverage ends. A pending quote is not necessarily active coverage.
Set up a three-column decision
Write down current group death benefit and cost, portability terms and cost, conversion terms and cost, then compare outside quotes if you are eligible. Consider health, future coverage needs, beneficiary designations and the possibility of a gap. For a household relying on your income, confirm effective dates in writing before choosing any cancellation.
What to do next
- Request the group certificate and election forms
- Write down portability and conversion deadlines
- Compare available death benefits and premium schedules
- Ask about evidence of insurability and exclusions
- Confirm replacement policy effective date
Common questions
Is employer life insurance covered by COBRA?
COBRA primarily concerns continuation of qualifying health coverage, not a general right to continue group life insurance.
Should I always convert if I have a medical condition?
Not automatically. First check eligibility, price, coverage limits and available alternatives with a licensed professional.
Educational insurance information, not an insurance quote or legal advice. Policy terms, insurer underwriting and state rules govern coverage.