Your Options When Leaving a Group Health Insurance Plan

Options when leaving a group insurance planWhen one leaves an employ most of the time a person loses their group insurance benefits.  Often, they still need their Life insurance, Long Term Disability Insurance and Health and Dental benefits

What options are available and what can you do.

The follow options are time sensitive.  They require that you apply and pay the first premium within 30 or 60 days of losing your benefits.  So if you need your insurance, with no medical questions – you need to act immediately upon losing your group insurance benefits.

Life Insurance

Many people count on their life insurance with their employers as an important  part of their personal security plan for their families.  It can often be the only life insurance that they have.

And if the individual has health issues and cannot qualify for normal rates of individual life insurance, they will lose something extremely important to them, and to their families.

Most employer sponsored Group Life Insurance plans allow for the life insurance to be converted to an individual life insurance policy, with no medical questions and no medical exams.  You must apply and pay the first premium – within 30 days of losing the group life insurance benefits.

There is often a maximum cap that you can convert – such as $200,000

Why convert?

You would want to convert if you have any medical issues.
Or you need the coverage, but do not wish to answer any medical or underwriting questions.
It is easy and convenient to apply for conversion of your life insurance.

This conversion life insurance coverage is available only from the insurer that has issued the group insurance plan you are leaving.

Premiums – for your newly converted life insurance policy, the premium will not be the premium that your employer is paying, as the policy will be completely in your control have nothing to do with your previous employer.  Your premium will be based on the standard (meaning no health issues) premium .  Which is good.  So even if you have health issues, or do not qualify medically for insurance, you will still be able to pay a reasonable premium.

The plans you can convert to vary between different insurers.  They can be smoker, non smoker or blended rates between the two.  And normally there will be a 1 year term, and a permanent plan available.

Speak to your group insurance plan administrator immediately to obtain the forms and the plan and premium payment options.  Remember, you must apply with 30 days of losing your group benefits.


Long Term Disability

Most group insurance plans do not offer conversion, with no medical questions,of the Long Term Disability insurance.   But there are some that do.

So speak to your group plan administrator to have a group insurance benefits plan that has Long Term Disability Benefits that are convertible, with no medical questions, when you leave the group plan.

How the policy works is different with each insurer.

This conversion long term disability coverage is available only from the insurer that has issued the group insurance plan you are leaving.

The advantage is that

  1. It is completely portable to any work you do or if you are self-employed in the future.
  2. There is no medical exam, or medical questions
  3. The policy will be issued regardless of your health.

Speak to your group insurance plan administrator immediately
–  to determine whether you have the LTD conversion option in your plan
–  to obtain the forms and the plan and premium payment options.


Health & Dental Benefits

Drugs, Hospital, Ambulance, Paramedical Services such as Chiropractor and Physiotherapy and Vision benefits are the most used benefits of a group plan.  And most people need the security of knowing that they have some coverage to help keep them and their loved ones healthy.

The benefits  with a group plan are not directly convertible.

The solution :   Individual Health & Dental Insurance – with Guaranteed Acceptance.

You must apply  and pay the first two months premium – within 60 days of losing your group benefits, to qualify for guaranteed acceptance.  Guaranteed acceptance for these plans means no medical questions at all.  No medical exams at all.  Just provide your pertinent details, such as name, address, payment details, plus your certificate number,  group policy number, and insurer of the group plan your are leaving.

Your policy will be issued regardless of your health, and you will be covered for conditions you already have.

Regardless of who is your group health benefits insurer, you can apply for benefits with insurers who offer this type of plan.  So if you were insured with Great West Life, you can apply to Manulife’s plan for benefits.

I offer affordable and valuable benefits through Manulife.You can access this insurance under Individual Health & Dental Insurance – Follow Me on this website.  You can instantly receive quotes, brochures and apply very easily online.

The advantage

1. Guaranteed acceptance (if you apply within 60 days of losing your group benefits)
2. Completely portable.
3. Coverage for conditions you already have.
4. Renewable regardless of any changes in your health
5. Can be tax deductible business expense if you are self-employed (check with your accountant that you qualify as self-employed by CRA).  Visit the Individual Health and Dental Taxation page here, and view an example of the tax savings here.

If you miss the 60 days window, you can apply for Individual Health and Dental Insurance, but you will need to answer medical questions for most plan options, and for most of these plans, conditions you already have will probably not be covered.

So I encourage you to apply (paperwork or online application must be in the insurers hands) within the 60 days.

If you would like information visit:    Leaving a Group Plan Health Insurance
If you would like information visit:    Individual Health & Dental Insurance

If you have questions just call or email.  It would be a pleasure to be of service.

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