Can you transfer your life insurance policy once fired?

Question

If i'm fired from the employer providing my life insurance policy can I take the policy & pay on my own it myself or can i get the money back that i put into the policy or is the policy just lost once fired?

Answer 1

(This answer assumes you are a resident of the United States.)

It depends upon the state where the policy was issued. However, I can tell you that MOST states follow the National Association of Insurance Commissioner's (NAIC) model law which permits a person to "convert" their group life insurance into an individual policy. This conversion usually must be done within 31 days of the date your coverage under the group life insurance policy ended. Some states extend this period of time if you are not properly notified of your right to convert. Contact the insurer for the conversion paperwork; your insurer may refer you back to your ex-employer, however.

Conversion from group to individual life coverage is always WITHOUT an "evidence of insurability" requirement, meaning you do NOT have to tell the insurer anything about your health.

Depending upon what state the group policy was issued in, this conversion option is also available if the policy is cancelled by the employer. However, there are restrictions.

If you still have the Certificate of Insurance given to you when you first became covered, this will be explained in the "Conversion" section of the policy.

As some others wrote, you are not entitled to a premium refund. The premiums paid for a group term life policy are considered "earned" by the Company. Also, I've never seen a group term policy that offered any cash value that could be surrendered.

If you need more information about your rights, call the insurance commissioner's office in the state where you worked.

Here's a summary I found on-line that may explain further: go to page 3.

http://www.insurance-schools.com/Und_Life.pdf/Und_Life_CE_Part4.pdf#search='NAIC%20group%20life%20insurance%20conversion'

I hope this helps.

Answer 2

The vast majority of life insurance offered as a benefit by employers is group term life. You must be a member of the group, i.e. the employees of the company to be eligible for coverage.

On rare occasions, you may be able to continue the insurance coverage when you leave the company though it would be converted to an individual term policy with substantially higher rates than were payable as a member of the group. Check with your HR department to see if this is an option offered by your employer and the insurance carrier. You'd most likely have to provide proof of insurability -- usually a medical exam -- within a short time of your departure.

No cash value accrues on term insurance so you won't be entitled to any cash-out when you leave.

Answer 3

If it is a group term life insurance policy, which most are...the answer is usually "no".

There are some policies that are convertible into a more 'universal' life policies and they may be, if you agree to pay a higher premium.

Term life insurance these days is so cheap, however, that you probably can still go out and aggressively search and get a pretty decent policy at a good price and it won't be that much more than your group plan.

Answer 4

Sit back and relax my friend. The fact of the matter is that insurance companies do not go bankrupt in the normal sense. They simply get acquired by other insurers. Sounds like your dad may have had a hybrid policy that has an investment component to it. The investment is not doing well and isn't covering the cost of maintaining the policy costs. Hard for me to advise further without seeing the policy etc. But in any case don't be concerned about the solvency of the insurance carrier.

Answer 5

I suggest that you try this website where you can get quotes from different companies: http://COVERAGEDEALS.NET/index.html?src=2YAvpcztSE82

RE :Can you transfer your life insurance policy once fired?
If i'm fired from the employer providing my life insurance policy can I take the policy & pay on my own it myself or can i get the money back that i put into the policy or is the policy just lost once fired?
Follow 9 answers

Answer 6

most life insurance offered by your employer are called "group life insurance." since its a group insurance, you cannot take the policy with you. Premiums are never refunded on group insurance.

Answer 7

You need to find out the name of the company who handles the insurance policy, ask them what your options are. Usually you can roll it over into another account. Some companies let you borrow on it etc.

Answer 8

If the job is providing and paying a portion of the insurance, it may depend upon the portion they are paying, if better than 50 percent probably not! Your human resource department would know for sure! Peace!

Answer 9

Usually you cannot transfer it. It's usually lost when your employment terminates.

Group life insurance does NOT build a "cash value" to refund to you.