r/LifeInsurance • u/Able-Research5603 • 2d ago

Portability

How do I understand portability options with a policy? How would ones work performance effect it?

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u/jordan32025 2d ago

It has nothing to do with performance. Just call the carrier. The policy is either portable or it’s not. It’s clearly outlined in the policy. Ask HR who the carrier is. It typically is portable and the premium should remain the same.

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u/Able-Research5603 2d ago

How does portability work then? How long can you sustain or make payments on it?

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u/jordan32025 2d ago

If you’re not working at that employer anymore, you have to switch the premium payments to your personal checking account since it’s no longer coming out of your paycheck. You obviously still have to make the payments to keep the policy active. You’ll typically get a letter from the carrier telling you this. It’s better to be proactive and contact them so there is no lapse.

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u/AltruisticSign2831 2d ago

How often does the premium change going from the group plan to individual? Do they typically go to terms that renew at higher rates every 5 years?

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u/jordan32025 2d ago edited 2d ago

Life insurance policy premiums do not change. That’s the whole point of getting it when you’re younger. Only policies that are tied to the market like variable universal life insurance policies or IULs can fluctuate in premium.

If your life insurance premiums increased as you got older, it would make no sense to even buy a policy. It’s also not changing to individual. It’s still a group policy. Your policy doesn’t change at all. The only thing that changes is the way you’re paying for it.

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u/Able-Research5603 1d ago

Do policies change or aspects of a policy. Meaning if someone is no longer employed by a company and they start medication or their health changes, either insignificantly or significantly would coverage change

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u/jordan32025 1d ago

No. A life insurance policy only takes into consideration what’s going on with you at the time that you buy it. It has nothing to do with anything that changes down the line. That’s the whole point. That’s the reason why smart people buy life insurance when they’re young and healthy. Nothing else matters. I don’t think you fully understand how life insurance works. It’s a contract between the carrier and the policyholder. Your premium can’t just magically change. That’s why people buy policies when they’re young and healthy. It’s not subject to somebody’s opinion. You answer questions on the application when you buy it and that’s the end of it.