Conversion Privilege

Conversion privilege is the right to transfer your existing group insurance coverage to an individual policy without providing medical evidence of insurability when your group coverage ends. This option allows you to maintain continuous protection during life transitions such as leaving a job, retiring, or losing eligibility under an employer-sponsored plan. It is a key feature that helps individuals avoid coverage gaps, especially if they have pre-existing medical conditions that could make new insurance difficult to obtain.

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The conversion privilege applies to several types of insurance, including health, dental, and life insurance. To exercise this right, you must apply within a specific time frame, usually between 30 and 90 days after your group coverage ends. The new individual plan may have different benefits and premiums, but it guarantees acceptance without requiring medical underwriting.

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Example:

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If you retire and your employer-sponsored health and dental coverage ends, you can apply for a personal health plan within 60 days through the insurer’s conversion privilege. Your application will be automatically approved, and coverage will begin without any health questions.

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What to Watch For:

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Apply as soon as possible after losing group coverage, as missing the conversion window will require you to apply for new insurance with medical underwriting. Review the differences between your new individual plan and your former group plan, as benefit maximums and premiums may change. Keep a copy of your group termination letter or benefits summary, as it is often required for conversion approval.