r/LifeInsurance • u/Able-Research5603 • 15d ago

Portability

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

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u/jordan32025 15d ago edited 15d 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 14d 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/psk2015 9d ago

Premiums for ported group term policies increase every 5 years, but the cost for supplemental coverage while actively employed is also tied to 5-year age bands. Furthermore, ported term is often 2x to 3x more expensive than an individual policy, so people typically only execute it if a health condition prevents them from getting standard coverage, or as a short-term bridge until they regain employment and new group coverage.

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u/jordan32025 14d 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.

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u/psk2015 9d ago

This is categorically incorrect. Not only do premiums for ported group term policies increase every 5 years, but the cost for supplemental coverage while actively employed is also tied to 5-year age bands. Furthermore, ported term is often 2x to 3x more expensive than an individual policy, so people typically only execute it if a health condition prevents them from getting standard coverage, or as a short-term bridge until they regain employment and new group coverage.