Can I keep my employer's term life insurance when I leave my job?

Most employer-sponsored group term life policies offer two options when your employment ends: portability and conversion. Portability allows you to continue the same group term policy by paying premiums directly to the insurer, without new underwriting. This can be valuable if your health has deteriorated and you'd face challenges qualifying individually.

Conversion allows you to convert the group coverage to an individual permanent policy—often whole life—without medical underwriting. The premium for a converted permanent policy is typically calculated at standard rates for your age, which can be expensive.

Both options have strict deadlines—usually 30 to 60 days after your employment ends. Missing this window means losing these rights and needing to apply for new coverage through normal underwriting.

Before relying on portability or conversion, compare costs against purchasing a new individual policy. Individual underwriting may offer significantly better pricing if your health allows. For those whose health has changed, portability and conversion can be lifelines that preserve coverage that would otherwise be unavailable.