Whether the employee retires, is let go or quits, the group life insurance policy will cease to cover the individual either immediately on termination of a working contract or within a short period of time following their departure. Depending on the employer and the group life insurance policy, it may be possible for a leaving employee to convert their group life insurance coverage into an individual life insurance policy without needing to undergo new medical underwriting. Expert advice Check your contract or speak with your insurance provider to confirm how it handles coverage for employees after they leave.