Group Life Insurance and Portability

About Life Insurance Portability:

The portability option keeps the policy as a term life plan. Provisions and rates match that of the former group plan. The group's supplemental life rates are those used to port both basic and voluntary life insurance. These rates will increase every 5 years when the employee's age ends in a 5 or a 0. The benefits will also reduce according to the policy provisions. There is no cash value to a term life policy. And lastly, the policy is not portable if anyone applying for portable coverage has a medical condition which has a material effect on life expectancy. Therefore The only option for someone who is disabled or has a terminal illness would be to convert coverage.

With conversion the premiums are higher; however, you lock into the rate for the age at which you convert. The premiums will never increase and the benefits will never reduce. A whole life policy also accrues cash value over time. The policy can be borrowed against or cashed out. Lastly, conversion is available to all, regardless of medical conditions even if the individual has a terminal illness.

There isn't a fee for portability, but there is a policy fee for conversion:

Policy fee is as follows:

$90.00 per annual payment

$ 46.80 per semi annual payment

$24.75 per quarterly payment.

If you have any questions about your options under this plan, contact "askUnum" at 1-800-275-8686