Guaranteed Issue (GI) / Conversion
Guaranteed Issue (GI) or Conversion refers to an insurance option that allows individuals leaving a group benefits plan to obtain personal coverage without completing medical questionnaires or providing evidence of insurability. This feature guarantees approval as long as the individual applies within a specific time frame, usually 60 to 90 days after group coverage ends. It ensures continuity of protection and prevents gaps in coverage during employment changes, retirement, or loss of eligibility under a group plan.
How It Works
A guaranteed issue plan is issued automatically with no medical questions to answer, unlike a medically underwritten plan that requires you to answer health questions and give the insurer access to your medical records. Because guaranteed acceptance requires no medical underwriting, these plans cover pre-existing conditions, which makes them valuable for people who might otherwise be declined for new insurance based on their health status. Group conversion plans are a special type of guaranteed issue plan available to people who have lost employee benefits coverage, helping prevent gaps when group benefits end through job loss, layoff, retirement, or an employer ending the plan. You must apply within a stated window after group coverage ends, commonly 30 to 60 days depending on the insurer and the original plan. For example, Manitoba Blue Cross's Blue Choice Conversion plan guarantees approval with no medical questionnaire as long as you apply within 60 days of your employer group coverage ending, and it is available regardless of which carrier provided the prior group plan.
Example:
Suppose your employer health and dental benefits end on June 30 because you are laid off. Rather than answer medical questions for a new individual plan, you apply for a Guaranteed Issue conversion plan, such as a provincial Blue Cross Conversion plan, within the insurer's window, often 60 days of your group coverage ending. Your acceptance is guaranteed with no medical questionnaire, so your pre-existing conditions stay covered, and your new personal plan picks up core benefits like prescription drugs, dental, and vision. The trade-off is that you now pay the full premium yourself with no employer contribution, and the benefit maximums are typically lower than your old group plan.
What to Watch For:
If you miss the conversion window, you usually lose the option to convert and must instead apply for a medically underwritten individual plan, which can mean health questions, coverage exclusions, higher costs, or being declined. Conversion and guaranteed issue plans focus on core benefits such as prescription drugs, dental care, and vision, and typically carry lower benefit maximums than the group plan they replace. Premiums on conversion plans are usually higher than the group plan because there is no employer contribution, and medically underwritten plans generally offer more coverage, especially drug coverage, than guaranteed issue plans.
