Portability allows an employee to convert their group term life insurance policy to a personal term life insurance policy. Term life insurance provides coverage for a certain time period (“term”), and the employee would submit premium payments directly to the carrier.

What does insurance portability mean?

Portability allows eligible insured employees to “port” (or buy) Group Life insurance coverage when they are losing coverage because their coverage is being voluntarily or involuntarily terminated. The portable group insurance coverage offers group term Life, Accidental Death and Dismemberment (AD&D).

What does it mean to be eligible for portability?

You are eligible for the Portability Plan, if you: are actively enrolled on a group benefits plan that has prescription drug coverage; are an Alberta resident with a valid Alberta Health Care card, and; are between 18 and 70 years of age.

What is the difference between life insurance conversion and portability?

Portability allows you to convert the group life policy to a personal term life insurance policy and conversion allows you to convert the policy to a whole life policy. Conversion to a whole life policy will result in a life insurance policy that remains in effect for the rest of your life.

What is an example of portability?

=> Portability deals with moving the component from one environment to another. Example: A game running on Windows XP is said to be portable if the same game can be run on Windows 7 without any change in the behavior of the game.

What is better portability or conversion?

Porting is a good solution for employees who are 69 years old or younger and are not terminating employment due to retirement, illness, or injury. Ported coverage is term life insurance to age 70, and the employee pays premium for coverage directly to Sun Life. Converted coverage is permanent universal life insurance.

How do you port a term plan?

The concept of portability does not exist in life insurance. You will be treated as as new customer for the new plan. The premiums and underwriting conditions will apply basis your new age and your current health condition.

What does portability mean for group life insurance?

What Does Life Insurance Portability Mean? Portability means continuing life insurance coverage of the same format and amount when the insured changes employers or retires. When an employee has group life insurance provided to him by his employer, that plan is in force for as long as the employee is actively working.

What is the difference between portability and conversion in life insurance?

Portability means that if you leave the company you can take your insurance policy with you. With many group plans you lose the insurance when you leave. Conversion means that you have the right to convert your group term insurance to a permanent plan that you own.

What does it mean to Port a life insurance policy?

If your employee’s life insurance protection ends, continuing their coverage might be available through the Conversion and/or Portability option in your group plan. This means that s/he may have a choice of “converting” the coverage to an individual whole life insurance policy or “porting” it to another term life insurance policy.

When to apply for portability of life insurance?

Like a converted policy, employees are eligible for Portability regardless of health status as long as they apply within the time frame listed in the certificate of insurance or policy (usually 31 days after coverage loss). “Ported” coverage usually costs less than “converted” coverage.