Group Life Insurance What Happens when it goes away

If you lose your job, you may be losing much more than a steady paycheck. For many people, this also means that benefits such as their group life insurance go out the window. It is important that if you lose your group life insurance policy that you make up for this sooner rather than later.

The first thing to keep in mind is that you may be able to convert your past group insurance policy into an individual policy. If possible, you will be able to continue coverage without having to change too much.

But although you may be able to convert your group policy, you should remember that your premiums are not going to be the same. In fact, they will be much higher and will be based largely on your age, health, sex, and other details. For those with recent medical problems a conversion policy is a great idea because they are not subject to medical underwriting.

On the other side of things, if you are in good health you may find it more cost effective to skip the conversion policy and speak with a broker. Although you will probably end up paying more than you did with your group life insurance coverage, it will more than likely be less than a conversion policy.

Since it is possible that you could lose your job, and in turn all your benefits, make sure that you have a backup plan in mind. Going without life insurance coverage is never a good idea; especially if you have a spouse and/or children relying on you.

Overall, if you lose your job first check out the available conversion coverage and then look into speaking with a broker.