When you leave a position that offers life insurance coverage, it’s usually possible to keep your coverage with a conversion option offered by the insurer. However, it can be difficult to tell if you need to keep your current policy or if you should seek out other options. The insurance experts at American Tri-Star in San Diego discuss a few considerations regarding the decision to keep a life insurance policy after switching jobs.
Your Health and Age Matter
Insurance companies like to keep their customers, so they typically make it possible to continue life insurance even after you leave the job that offered it. Under the new contract, you would start to pay a monthly premium out of your own pocket.
This can be advantageous if you have developed health problems that might make it difficult for you to obtain life insurance. There usually isn’t a medical exam required to convert your policy, meaning you would have little to no trouble maintaining coverage after you stop working.
However, if you’re young and relatively healthy, this might turn out to be an unnecessary expense. Your premium is determined by your age, so you would be paying high premiums for insurance you might not need at this time in your life. Conversion rates are typically higher than that of an individual life insurance plan.
Your Policy Can Be Converted
You’re usually given 31 days after you leave your job to submit an application to convert your insurance coverage. You can apply for any kind of life insurance your employer offered you. However, you most likely you won’t be given the option of any supplemental coverage that came with your group life insurance policy, such as disability insurance. Even if you decide not to convert your life insurance policy, it still continues for 31 days after your last day at work. See your human resources manager for your employer’s specifics.
To learn more about life insurance, reach out to American Tri-Star Insurance. In addition to being experts in life insurance, we also offer affordable health, commercial, auto and property insurance in San Diego. Give us a call today at 619-272-2100 to speak with a knowledgeable agent and receive a complimentary quote.