Orlando Harmon
Converting and porting life insurance are two different options available to people who are leaving the company they work for. Converting a life insurance policy means changing a group or term life insurance policy to a permanent policy. Porting a life insurance policy means continuing the policy that the company has granted. The premiums for converting a life insurance policy are more expensive than porting, but the coverage will continue until the policyholder passes away.
| Characteristics | Values |
|---|---|
| Premiums | Porting is less expensive than converting, but they will increase as you age |
| Coverage | Converting will provide coverage until death, porting will only provide coverage for the term of the policy |
| Policy type | Converting changes a group or term life insurance policy to a permanent policy, porting continues the policy granted by the company |
| Policy features | If you port your policy, additional features may or may not remain effective |
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What You'll Learn
- Porting your life insurance policy means you continue the policy your company has granted
- Converting your life insurance policy means you change the group or term life insurance policy your company offered to a permanent policy
- Porting your life insurance policy will be less expensive than converting it
- If you port your life insurance policy, you will only receive coverage for the term of the policy
- If you convert your life insurance policy, the premiums will remain the same and you will continue to receive coverage until you pass away, as long as you continue to pay the premiums
Porting your life insurance policy means you continue the policy your company has granted
Converting your life insurance policy means you have decided to change the group or term life insurance policy that your company offered to a permanent policy. This will typically be a whole life insurance policy, but some states will allow or require you to convert it to a universal life policy. The premiums for a converted policy will be more expensive, but they will remain the same and you will continue to receive coverage until you pass away, as long as you continue to pay the premiums.
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Converting your life insurance policy means you change the group or term life insurance policy your company offered to a permanent policy
Porting your life insurance policy means that you have decided to continue the policy that your company has granted. The only type of policies that can be ported are term life insurance policies. If you are leaving the company you work for, your life insurance policy will continue to be a term life insurance policy, and you will be responsible for paying the premiums on your policy. The premiums for porting your life insurance policy will be lower than if you decide to convert it, but they will increase as you age. Furthermore, there may be an age limit for the policy, and once you exceed that age limit, you will not be able to renew it.
If you are unsure about which option to choose, it is recommended that you speak to a reputable insurance agent. They can help you understand the differences between converting and porting your life insurance policy and advise you on the best option for your specific situation.
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Porting your life insurance policy will be less expensive than converting it
Converting your life insurance policy means that you have decided to change the group, or term, life insurance policy that your company offered to a permanent policy. Typically, it will be changed to a whole life insurance policy. If you convert your policy to a permanent life insurance policy, the premiums will be more expensive. However, the premiums will remain the same and you will continue to receive coverage until you pass away, as long as you continue to pay the premiums.
If you port your policy, the premiums will be less expensive than if you decided to convert it. However, you will only receive coverage for the term of the policy. The premiums for porting your life insurance policy will be lower than if you decide to convert it; however, they will increase as you age. Furthermore, there may be an age limit for the policy, and once you exceed that age limit, you will not be able to renew it.
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If you port your life insurance policy, you will only receive coverage for the term of the policy
Porting your life insurance policy means that you have decided to continue the policy that your company has granted. The only type of policies that can be ported are term life insurance policies. If you port your life insurance policy, you will only receive coverage for the term of the policy. For example, if the term was 30 years and you worked for the company for 15 years, the coverage will only be effective for 15 more years. The premiums for porting your life insurance policy will be lower than if you decide to convert it, but they will increase as you age. There may also be an age limit for the policy, and once you exceed that age limit, you will not be able to renew it.
Converting your life insurance policy means that you have decided to change the group, or term, life insurance policy that your company offered to a permanent policy. Typically, it will be changed to a whole life insurance policy, but some states will allow you to or require you to convert it to a universal life policy. If you convert your policy to a permanent life insurance policy, the premiums will be more expensive, but the premiums will remain the same and you will continue to receive coverage until you pass away, as long as you continue to pay the premiums.
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If you convert your life insurance policy, the premiums will remain the same and you will continue to receive coverage until you pass away, as long as you continue to pay the premiums
Porting your life insurance policy means that you have decided to continue the policy that your company has granted. The only type of policies that can be ported are term life insurance policies. If you are leaving the company you work for, and you decide to port your life insurance policy, it will continue to be a term life insurance policy. You will be responsible for paying the premiums on your policy, as you are no longer an employee of the company that offered the coverage as a benefit.
The premiums for porting your life insurance policy will be lower than if you decide to convert it, however, they will increase as you age. Furthermore, there may be an age limit for the policy, and once you exceed that age limit, you will not be able to renew it. If there are any additional features on your policy, or riders, if you decide to port the policy, they may or may not remain effective.
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Frequently asked questions
Converting your life insurance policy means changing your group or term life insurance policy to a permanent policy. Porting your life insurance policy means continuing the policy that your company has granted.
The premiums will be more expensive, but they will remain the same and you will continue to receive coverage until you pass away, as long as you continue to pay the premiums.
The premiums will be less expensive, but you will only receive coverage for the term of the policy. The premiums will increase as you age and there may be an age limit for the policy, after which you will not be able to renew it.
