Conversion of Benefits

Conversion of benefits is the option that allows an individual to transfer or “convert” their group insurance coverage into a personal plan when they lose eligibility under their employer’s group policy. This typically occurs when someone leaves a job, retires, or loses coverage due to a change in employment status. The conversion option ensures continuity of protection without requiring new medical evidence of insurability, as long as the application is submitted within a specific eligibility window, usually 60 to 90 days.

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Converted benefits can include health, dental, or life insurance, depending on what the group plan offered and what the insurer allows to be carried over. The new personal policy will have different terms and premiums, often with lower benefit maximums or simplified coverage compared to the group plan. The key advantage of conversion is that it guarantees access to coverage even if your health has changed, preventing gaps in protection.

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Example:

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If your employment ends on June 30, you can apply to convert your group health benefits into a personal health plan with the same insurer by August 29 (within 60 days). Your new plan would continue drug and dental coverage without requiring medical questions.

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What to Watch For:

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Apply as soon as possible after group coverage ends, as missing the conversion deadline usually means you must apply for a new plan with full medical underwriting. Review the converted plan’s limits and premiums carefully, since converted benefits are designed for continuity rather than identical replacement of your previous coverage.