Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Not much really. On an individual life policy there isn't an issue of portability as the individual owns the policy and the policy goes where ever the individual goes.
With a group policy, there usually is a provision that allows an individual the opportunity to "convert" their group policy to an individual policy and have it become their personal property. Where this may be important is if the individual has serious health conditions and the carve out of an individual plan out of the group plan makes sense in terms of cost or even availability.
Some voluntary group life insurance plans have a portability feature that allows you to take the plan with you when you leave.
This is different from a conversion provision that requires you to exchange the term life insurance plan for a form of permanent insurance from the carrier.
True portability plans exist, allowing you to keep the plan you have in the same form at the same rate structure.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Usually "portability" benefits for a life insurance policy are connected when one has group coverage. It means that if you have such coverage, through your employer for example, if you change jobs, you can take that portion of your group benefits with you. When one owns one's own Life Insurance policy it is, by it's very nature completely portable. You own it so it goes with you and provides benefits regardless of your employer or place of residence.
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With a group policy, there usually is a provision that allows an individual the opportunity to "convert" their group policy to an individual policy and have it become their personal property. Where this may be important is if the individual has serious health conditions and the carve out of an individual plan out of the group plan makes sense in terms of cost or even availability.
This is different from a conversion provision that requires you to exchange the term life insurance plan for a form of permanent insurance from the carrier.
True portability plans exist, allowing you to keep the plan you have in the same form at the same rate structure.