As a Commonwealth Financial group plan member, you may be eligible to convert your group life insurance to an individual policy without having to provide evidence of good health or undergo a medical exam, provided you do so within 31 days of the date your group life insurance terminates or reduces. You can convert your Basic Life Insurance amount and Optional Life Insurance amount (if applicable) up to a combined maximum of $200,000 ($400,000 for residents of Quebec) - or as indicated in your group contract. Depending on your plan specifications, you may also be able to convert your spouse's coverage to an individual policy. When your group life insurance benefits cease or reduce you may have the following options:
- Convert your (and/or your spouse's) group life insurance to individual insurance. Residents of Quebec may convert Dependant life coverage. You must apply within 31 days of termination or reduction of Group Life Insurance coverage.
- Replace your (and/or your spouse's and/or your dependant's) group life coverage with an individual plan purchased through your financial advisor or a Commonwealth Financial agent
- Get a new Group Life policy at your next place of employment
You may choose one of any of the following three options for an individual policy:
PERMANENT LIFE – This is a Permanent Life policy with the insurance becoming payable at the death of the insured. Your premiums are guaranteed not to increase, we guarantee administration charges won't change and we offer an investment account that guarantees you a minimum interest rate for the life of the policy
LEVEL TERM LIFE TO AGE 65 – This policy provides temporary life insurance from the date of issue, until the insured reaches age 65. This policy cannot be converted to another form of insurance, and will terminate when the insured reaches age 65 or at death, whichever is earlier. This policy does not participate in dividends.
ONE-YEAR NON-RENEWABLE, CONVERTIBLE TERM INSURANCE – This policy provides temporary life insurance from the date of issue for one year only. This policy does not participate in dividends. It can be exchanged at any time during the one-year period without medical evidence, but only to a Permanent Life policy or Term Life to Age 65 as outlined above. The premium of the new policy will be calculated at the attained age of the insured at the time of the exchange of policy.
For more information about applying for conversion of your group life coverage to an individual policy, contact your employer's plan administrator or Commonwealth Financial