What Is Portability of Life Insurance?

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The "portability" of life insurance refers to situations where you leave your job and might need to take your policy with you. Learn about the portability of life insurance with help from a financial industry expert in this free video clip.

Part of the Video Series: Life Insurance Lessons
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Video Transcript

Hi, my name is Phil Cioppa and I'm the host of the nationally syndicated radio program, "The Phil Cioppa Show." There's a lot of question about portability life insurance. When you leave your job and you move on can you take your employer's life insurance with you? More than likely the answer is yes although there are still employers out there that do not buy into the portability clause when they took the group insurance policy out on their employees but if you can you need to look very carefully at what the criteria is in order to maintain that policy. There are those that you can take and you won't have to be underwritten individually. They will just give you a price based on your years of service with the particular company that you were with or based upon your age. There are others that will want you to be individually underwritten. So if you have any health issues they're going to come to play. The other difference is what happens if you're only paying as most people do a very minimal amount to the employer for your life insurance. Sometimes it's as low as a dollar and a quarter or two dollars and fifty cents. Now what do you do because the policy is going to go up greatly? In my case I left a particular position, I was paying $1.15 a pay check. When I left I ended up paying $70 a month for the same amount of insurance. But it was worth it because I was able to take that insurance without any further underwriting. So you need to really look at this. It's a balancing act. What's really in your best interest and what is it that you can afford to do? Thank you very much.


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