When Should You Convert Group Benefits?
It doesn't matter whether you are an administrator, owner, or employee, you should take a minute and make yourself aware of the following information.
Converting Group Benefits means the ability an employee has to transfer some company benefits to a personal benefit package when employment is terminated, without medical information required. Most traditional employee benefit plans offer the option of conversion for the life insurance benefit, and often the health benefits. This option must be exercised within 31 days of termination.
Why would someone take advantage of such an offer? There could be any number of reasons. The employee may not have any other benefits available after termination and wants to keep some. There are no medical questionaires and it is really easy to do.
Should the conversion option be taken? If the terminating employee has any health challenges which would affect a normal life insurance approval or independent benefits approval, it may in fact, be their only opportunity to get more life insurance or other health benefits which they may need. If the terminating employee has good health and can take the time to apply for personal benefits there will be a substantial savings in cost if they can be approved. There is a price premium that anyone will pay for the conversion privilege of group benefits.
What are the best steps to take if I have any questions about the suitability of group conversion benefits? Contact the Broker that looks after your benefit package or have the employee contact them. If you don't want to do that, then contact an Independent licensed Broker who can give professional advice for the given situation.
Are you having any challenges with your current benefit package, claims, service, etc? Do you want or need some independent advice or help? Give John a call right now, put 28 years of solid experience on your team.
Do you need some help with Disability Income Planning or Business Overhead Expense Planning? Give John or Jordan a call and get the straight answers with your first call.