I've just received in the mail, paperwork and a letter pointing out that my insurance is "portable" and I can convert it from my employers plan to one of my own.
Should I do that? Have I created any equity in an employer plan such that I would want to retain it?
I still have insurance, now through my new employer, but would this insurance be cheaper because I've had it for a few years?
2007-05-31 13:15:09 · 3 answers · asked by Paul 2 in Business & Finance ➔ Insurance
The only two reasons to use your portability option are:
1. You are no longer insurable and you need more life insurance than you can purchase on a guaranteed basis from your new employer.
2. It was group Universal policy in which you built up equity.
If neither of these conditions exist abort, don't port.
2007-05-31 15:32:40 · answer #1 · answered by SPATTMAN 3 · 1⤊ 0⤋
If you can get your own private insurance policy, I would - it will be cheaper, and you can keep it forever. BUT, if you're uninsurable for some reason, then yes, convert this policy from your prior employer.
You don't have any "equity" in the group life policy. It's just a bonus they offer you, when you leave. It's not going to be "cheaper" because you've had it a few years, it doesn't work that way. But it might be cheaper because it's a different company.
2007-05-31 13:53:38 · answer #2 · answered by Anonymous 7 · 0⤊ 1⤋
Yes you should transfer it. Also you should compare the benefits with your current insurance in your new job. If they are about the same then determine which is the most economical and keep that one even if it is the one from your previous job and you have to ensure the premiums are paid.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-05-31 13:21:10 · answer #3 · answered by loanmasterone 7 · 0⤊ 0⤋