New Job – New Life Insurance
You’re thinking about or have accepted a new job and leaving your current employer. It’s a great opportunity, but you should take a few minutes to review your life insurance. You have the group insurance through your current employer, and now have to figure out your insurance needs and options. Here are a couple of questions to ask yourself:
1. Is your current insurance portable – can you take it with you when your leave your job? If not,
2. Can you convert – or exchange – the group life insurance for individual permanent insurance?
If the policy is portable you can continue to pay the premiums directly, the insurance company would send the premium notices to you at home or you could pay by EFT from your checking account. Policies that are portable are usually through a voluntary insurance program offered through employers. Perhaps you’re in management and the insurance was available to you through a special executive or management program (supplemental employer retirement program aka SERP). You already own the policy and your spouse is the beneficiary, you may only need to change how the premiums are paid.
If you have group insurance, you can most likely convert your group term insurance into an individual permanent policy, but the premiums may be expensive because it’s a guaranteed option. If you’re in great health you may not have the ‘credits’ that would be available if you applied for new individual insurance. However, on the flip side, if you've a medical condition which would make it hard to qualify for your own insurance, converting your group insurance might be the best option. Contact the insurance company to get conversion information and a quote to review.
About the author: Melanie Tretheway has been in the life insurance business for over 30 years. She is a mother of two who loves baking, reading, gardening, and taking care of her family. Melanie takes great pride in making sure you are informed, especially when it comes to choosing the right life insurance policy for your family. You can contact Melanie at 1-800-651-1953 or MTretheway@Pivot.com.