Most group insurance plans allow for the conversion of certain benefits to “individual” plans at the time of termination or retirement. The benefits with this privilege generally apply to:
- Life Insurance
- Dependent Life (spouse only)
- Critical Illness Insurance
- Health and Dental
Here is where it gets tricky. The employee must apply for the conversion no later than 31 days following the date their employment ceases. The employer is the one held responsible by the courts in making sure these conversion options are made available to the employee. There are legal pitfalls that can come up for employers explaining what they offer if an employee doesn’t grasp the details.
At Gary White Insurance we go to great lengths to protect our employer clients by making sure terminated or retired employees are made fully aware of their conversion rights. If you are not currently getting this type of service, call us for a complete demonstration of The Personal BeneFit Program™. Leave the communication of benefits up to us.