What happens to life insurance when you leave a job?

How can I get life insurance after leaving a job?

To get life insurance after termination or after you leave a job, you'll need to do one of the following:

• Port or convert your employer's group policy
• Purchase group life insurance through a new employer
• Purchase individual life insurance

How can I transfer employer life insurance?

If your employer's group life insurance is portable, you can opt to "port" or transfer your coverage, paying your premium directly to the insurance company to keep your coverage in force. This is typically used when someone leaves their job or is fired and, as a result, will have a gap in coverage. (You may also see a gap in coverage when employer-provided life insurance ends after retirement.) However, employer life insurance portability isn't common — most employer-provided coverage simply ends on your last day of employment or the last day of the month that you leave. Check with your employer to find out whether your group life insurance policy offers portability options.

When exactly your coverage ends will depend on the terms of your employer's benefits. And if porting is an option, it typically needs to take place within a month or two of leaving your job, depending on the policy's terms.

How does porting employer life insurance work?

If you choose to port your employer life insurance policy after leaving a job, consider following these steps:

1. Understand porting basics: When you port your employer's group life policy, you'll pay the premium yourself, and as time passes, you can choose to renew or end your ported coverage (typically on a monthly or annual basis).
2. Compare costs: Compare the potential cost to the cost of a standard term life insurance policy so you can see if it would make more sense to simply purchase your own term life policy.
3. Consider supplemental coverage: Keep in mind that most employer-provided life insurance policies only offer coverage equal to one times the amount of your salary, according to LIMRA's 2025 Insurance Barometer Study. You may decide to port your policy simply as a form of supplemental life insurance — this can help prevent a gap in coverage while you figure out your options.

What does it mean to convert an employer group life policy?

Converting life insurance refers to converting a term policy to a permanent policy. Group life insurance typically comes in the form of renewable term life insurance that renews every year or so. These policies have a low death benefit and are highly affordable — they may even be fully paid for by the employer. Depending on your employer's group policy, if you leave your job, you may have the option to port your coverage and then convert your ported term policy into a permanent one.

Since permanent coverage costs more than term coverage, converting will result in a higher premium, and you'll be fully responsible for that premium. Before porting and converting life insurance after termination or leaving your job, compare the potential cost with rates for a standard whole life policy. You may be better off simply purchasing a new policy, depending on the quotes and coverage you qualify for.

When should I consider an individual life insurance policy?

Purchasing individual life insurance directly from an insurer may be right for you, depending on your life stage, financial responsibilities, and goals. Having life insurance coverage outside of your employer's plan may ensure you can maintain your coverage regardless of whether you change jobs or experience gaps in employment. You may consider an individual policy if:

• You want permanent coverage
• You want coverage that isn't tied to an employer or you're self-employed
• You want more coverage than your employer's group policy provides
• You want options like a cash value feature
• You have complex financial planning needs (e.g., caring for lifelong dependents)

Whether you choose individual or group coverage, age can play a key role in deciding when to get life insurance. Younger people typically qualify for lower premiums, so purchasing life insurance earlier may save you money in the long run.

Learn more about life insurance basics and when you should consider carrying multiple life insurance policies.

How to get life insurance after you leave a job

You can get a life insurance quote online and compare rates in minutes. You'll be asked some questions, and then you'll choose your coverage amount, policy length, and other details. You can also call 1-866-912-2477 to speak with a licensed Progressive Life by eFinancial representative who can help you find the right policy for you.