As we mentioned in previous article, many corporations will offer competitive packages, and that's even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will the conversion and waiver of premium and disability of group insurance of group insurance.
1. Conversion of group life insurance
The law gives the employee the right to convert their group life benefit without evidence of insurability if
a) Application of employees must be made and premium paid within 31 days of termination of the contract or employment.
b) Life insurance covers under old group insurance may be converted to any plan offered by the carrier including term insurance, whole life or other regular plans, indicated in the previous group contract.
c) The amount of conversion the employee can not excess of the level of coverage they enjoyed under the plan.
d) Premium payable is based on their attained age.
e) Full life coverage is continued for 31 days without charged after termination of employment or of the entire contract.
f) The converted policy will be dated 31 days from termination.
2. Waiver of Premium and Disability of Group Insurance
a) Total disability In case of a total disability prior to retirement, the group life premiums will be waived. Some contracts include a benefit whereby the premiums are waived and the face amount is paid out in equal annual installments over a period of time.
b) Partial disability This allow for the continuation of coverage without further premium payments until age 65 or until the insured is no longer disabled. b) The insurance carrier may require periodic proof of the continuance of total disability at any time. c) If application for waiver of premium is denied, contribution of employee's portion must be paid.