I am assuming here that you are talking about a group life insurance plan. Portability means that if you leave the company you can take your insurance policy with you. With many group plans you lose the insurance when you leave. Conversion means that you have the right to convert your group term insurance to a permanent plan that you own. You would then be able to take it with you when you leave.
Co-Founder, Coastal Financial Partners Group, California
For life insurance coverage obtained on an association or group basis, conversion and/or portability may be offered.
Portability simply means you can take the coverage you already have with you after termination.
Conversion is a right to take a new individually issued, permanent life policy with the same insurer, generally without needing to provide evidence of insurability, after termination under some circumstances. It might not be an option available after a certain age or beyond a certain amount. It is almost always limited to a product of the insurer's choice which may not be as competitive as other products in its portfolio for applicants willing to go through the normal underwriting process.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Personal life insurance is completely portable. The policy does not change if you change address or employment. Group term life insurance is usually available only to employees. If you don’t work for the company any longer, your term life expires. Conversion refers to your guaranteed right to exchange a term policy, either personal or group, for a permanent insurance plan offered by the company, without consideration of your medical condition. When you leave an employer you are offered conversion privileges because the coverage isn’t portable.
Life insurance portability is the ability to take your life insurance with you from job to job, state to state, or even country to country. Life insurance conversion is the ability to change your term life insurance from one that will end a set number of years, to one that will never end.
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Portability simply means you can take the coverage you already have with you after termination.
Conversion is a right to take a new individually issued, permanent life policy with the same insurer, generally without needing to provide evidence of insurability, after termination under some circumstances. It might not be an option available after a certain age or beyond a certain amount. It is almost always limited to a product of the insurer's choice which may not be as competitive as other products in its portfolio for applicants willing to go through the normal underwriting process.