What Is Insurance Portability?

When you quit a job, you can take your life insurance coverage with you thanks to insurance portability, taking management of your policy, and paying the premiums on your own.

Definition and Examples of Insurance Portability

When you leave a job, for example, life insurance portability enables you to keep getting coverage after your employer-provided coverage expires. In most cases, getting a term life insurance policy won’t require a health checkup or health questionnaire, and you’ll be responsible for paying the payments. Your coverage might be planned to renew, for instance, every five years, and the rate you receive when you port will be dependent on your present age. Your premium will rise each time you renew your insurance, so be prepared for growing prices.

A technique for maintaining life insurance coverage while you face a change in your existing group benefits. If you have health issues that make it hard to get life insurance, you might even use it to maintain long-term insurance coverage. Your employer might also give you the option to convert your group coverage into permanent insurance, which is not the same thing as porting it.

How Does Insurance Portability Work?

Life insurance portability permits you to maintain your life insurance coverage even if your employer’s benefits change. For instance, your benefits may change if you quit your work, your spouse’s coverage ends, you get divorced, or your employer lowers them. The term “triggering events” refers to this. If you switch your insurance, you’ll often receive a renewable term insurance policy that will last as long as you make premium payments or until you reach the insurer’s maximum age limit. Depending on the alternatives offered by your insurer, you can pay your premiums annually or more regularly.

How To Port a Policy

After quitting your employment, you must apply and pay your first premium if you want your current coverage to continue (or another triggering event). You could need to complete the process within 30 to 60 days, but check with your insurance provider for details.

An optional feature known as portability isn’t always available; it depends on several things, including your employer’s preferences, insurance provider policies, and state legislation. Check out the options if maintaining insurance coverage is crucial as you handle life changes before making any choices.


Instead of using payroll deductions, you pay premiums for a ported coverage directly to the insurance provider. If your employer provided some or all of your insurance coverage, that benefit ends when you leave your job, and you are then solely liable for the expense. Your age will determine how much you pay, and the premiums will rise over time. Your coverage will eventually expire or the death benefit will be exhausted (often between the ages of 65 and 80) or reduced.

Amount of Insurance

Up to the insurance company’s maximums, you normally keep the same death benefit when you move your coverage with you. For instance, if your death benefit is less than the insurer’s cap and is $300,000, you could transmit that amount. With a ported policy, you often cannot increase your death benefit; however, you can get additional insurance as a separate policy.

Portability vs. Convertibility

You can continue to have life insurance coverage even if your employer’s benefits change because of portability and convertibility. Although portability and conversion have many similarities, the primary distinction is that when you convert coverage, you receive a permanent life insurance policy with a level premium. By porting your policy, you can often get annual cost-increasing temporary life insurance. Here is a brief explanation:

Portability Conversion
Type of Insurance Term Permanent
Coverage continues after leaving your job Yes Yes
Premiums Increase Stay level, but will be higher than what you paid as an employee
When to apply Within a limited time after your benefits end Within a limited time after your benefits end

Check Also:

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