What are the differences between conversion and portability for life insurance plans?

Conversion:

• Allows a policyholder to convert their group life insurance policy to an individual permanent life insurance policy.
• Typically available when the policyholder's employment ends or when they reach a certain age.
• No medical exam is required to convert the policy.
• The premium for the new policy is based on the policyholder's age at the time of conversion and the coverage amount.

Portability:

• Allows a policyholder to continue their group life insurance coverage after leaving their employer.
• Typically available when the policyholder's employment ends or when they retire.
• The policyholder must pay the full premium for the coverage.
• Coverage amounts may be limited or reduced compared to the group policy.
• No medical exam is required to port the policy.

While both conversion and portability allow policyholders to continue their life insurance coverage after leaving their employer, they differ in terms of the type of policy that is obtained and the premium for the coverage. Conversion allows the policyholder to obtain an individual permanent life insurance policy, while portability allows them to continue their group life insurance coverage. It's important for policyholders to carefully consider their options and choose the type of coverage that best meets their individual needs.