Converting a group life insurance policy to an individual life insurance policy means that you are simply taking over your employer-provided life insurance plan after your contract with your employer ends. While most insurers offer the right to convert group insurance plans into individual life insurance policies, it is important to know the conversion eligibility requirements as your financial reliance on the insurance could be affected by them. Canadian group life insurance providers normally allow individuals to convert their group life insurance into individual life insurance policies with the following criteria:
The employee is under the age of 65
The application for conversion is submitted within 31 days of your employment termination
The converted death benefit is <$200,000
The application is submitted by a licensed advisor of the insurance company
While converting group life insurance to an individual policy normally doesn’t require a medical exam or health declaration, the premium rates will likely increase. The new premiums will be based on the prevailing rates of the insurance policy you choose, the death benefit amount that you are converting and your age.