The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) requires employers who sponsor group health plans to offer employees and their families the opportunity to purchase medical, dental or vision coverage at group rates. This federal law provides qualified beneficiaries the same health benefits as active employees, including the right to participate in Annual Enrollment and continue participation in the Healthcare FSA.COBRA Information 2020COBRA Information 2019Life Insurance: Conversion and Portability Forms and InformationRequest for Group Life Conversion Materias: The Standard Request for Conversion Materials
Continuation of Life Insurance Information
- Employees who are terminated from active employment are eligible for the Conversion (Whole Life) or Portability (Term Life) option.
- Employees who retire or terminate from a leave or disability may only opt for the Conversion option.
Conversion is for those who wish to convert any or all of their life insurance coverage when they terminate to a whole life policy. By converting their coverage to an individual policy, they'll continue to receive coverage without the need for a physical examination. Even if they are seriously ill or have a pre-existing medical condition, they can still convert their life insurance coverage. Only one type of coverage is available under the conversion option, which they convert to a permanent whole life insurance policy. This type of policy offers a guaranteed death benefit and guaranteed cash value, provided all premiums are paid when due and their have been no substantial loans or withdrawals.
Portability is for employees/a spouse/children who wish to continue their optional term life coverage only (VTL and AD&D). One of the benefits of portability of term life insurance is that the coverage does not lapse if you apply within 31 days of your termination date. Because their coverage is uninterrupted, they will not be required to provide evidence of insurability to the insurance provider to maintain their coverage. This is beneficial if a member has a medical condition that developed after the coverage first began. They can continue to pay the premium at the group level, which may represent a significant savings over purchasing a policy as an individual or converting to whole life but still may be charged a higher rate than the group plan. portability is not available to employees who are retiring or disabled, and is only available if you have been actively employed prior to leaving your employment. there is not a separate policy for this provision. It is included in the active employee certificate.