Tip 260- Group Life Insurance Conversion

Many of us have life insurance through an employer sponsored group (term) life plan. Often, a base amount of coverage is paid for by the employer and then supplemental coverage can be elected on a voluntary basis for you, your spouse and even children.

Think about situations where eligibility for this coverage might end. Say for example, you want to retire early. Or there is a divorce. Maybe your child is turning 26.

In such cases, did you know that you have 31 days to convert your coverage to a personally owned cash value contract? That could be critically important if a health condition would prevent you from obtaining coverage from any other source.

Conversion rights are spelled out in your coverage certificate and/or in an employee handbook. Make sure to consult those provisions when losing group life insurance coverage.

But remember, you only have 31 days.