Employee Benefits: Life and AD&D Insurance Coverage After Termination
UNUM Life Insurance Company of America is the current Administrator of Michigan Catholic Conference’ Life Insurance Program. UNUM offers continuation of coverage when your group life coverage ends. There are three types of coverage to consider:
- Plan A—Provides insurance equal to one times the employee's gross annual salary to a maximum of five hundred thousand dollars ($500,000)
- Plan B—Provides insurance equal to one and one-half times the employee's gross annual salary to a maximum of five hundred thousand dollars ($500,000)
- Plan C—Provides insurance equal to two times the employee's gross annual salary to a maximum of five hundred thousand dollars ($500,000)
Portability Coverage
Employees leaving employment in good health, can apply for Portability coverage through UNUM. An employee whose hours drop below full-time status may also apply.
The employee must request, apply and pay for the Portability coverage within 31 days of termination of employment or change in employment status.
Employees can port to the amount of coverage they held under their employer’s policy or a deceased amount.
This is a TERM LIFE policy.
Conversion Coverage
An employee terminating employment who is “suffering from a disease that has a material and substantial effect on his/her life expectancy” may purchase a Conversion Policy to replace the amount of life insurance he/she had when coverage terminated.
The employee must request, apply and pay for the Conversion Policy within 31 days after the group life insurance policy ends. The amount of coverage will remain the same.
The employee can convert to a 1 year term policy. After the first year, it transitions to a whole life policy. No questions are asked about the employee’s health or any other insurance risk factors. No verification of disability is required.
The cost of the Conversion Policy will be based on UNUM’s published rates for age and classes of risk at the time of purchase.
Contact Linda Crenshaw at 1-800-395-5565 if you have additional questions or to request an application for both insurance options.
