Well over half of all private employers in the United States offer life insurance to full-time employees. It’s a great benefit as it provides financial assistance for expenses such as funeral costs, mortgage payments, tuition, and more. Unfortunately, problems can arise with this type of coverage if you quit your job or are laid off. Knowing how to transfer your policy (or switch to a new one) is important to ensure your family remains covered as you transition to a new job or self-employment. 

Can You "Port" Your Coverage?

"Porting" your coverage means you take on the cost of paying for your existing life insurance policy. Not all insurers allow for this, but some do. Check your policy’s terms and conditions and make sure you know how much you’ll have to pay per month. Additionally, you’ll want to work with an experienced agent at North Coast Insurance Services, as the process is complex and mistakes can be costly.

Can You Cash Out?

If you have a whole life policy, you can cash it out before you buy a new one. However, remember that it’s best to wait for at least 10 years before cashing out your life insurance coverage. Talk to your current insurer about how much money you’ll get before you decide to go this route.

Purchasing New Coverage

Dropping your existing life insurance and buying a new policy is most likely your best option if you change jobs. This is especially true if you’re still relatively young and in good health, as you can find coverage at a reasonable cost. North Coast Insurance Services, serving Lexington, MI, can help you review your options and costs to find life insurance that fits your situation.