Understanding Your Group Life Insurance Coverage After a Layoff 
Being laid off from your job can bring about a range of emotions, from uncertainty to financial anxiety. One of the key concerns that many people have during this transition is whether their group life insurance will remain in place after they’ve lost their job. In most cases, the answer is no—once your employment ends, your group life insurance coverage with that employer typically ends as well. However, there are exceptions and options that may allow you to keep your life insurance benefits for a period after being laid off. Group Life Insurance Basics
Group life insurance is typically offered by employers as a benefit to employees. It’s often more affordable than individual policies and provides basic life insurance coverage to a large group of employees under a single policy. When you’re employed, your premiums are usually deducted from your paycheck, and your coverage is maintained as long as you’re actively employed with the company. However, if you’re laid off, this coverage usually terminates along with your employment status. But that doesn’t necessarily mean you’re without options for maintaining life insurance protection during this difficult time.
What Happens When Your Group Life Insurance Ends?
Once you’re no longer employed, you’ll likely receive a notice from your former employer’s human resources department explaining what happens with your group life insurance coverage. It’s important to read this notice carefully, as it will outline the details about your policy and any options you may have to extend, convert, or replace your coverage. In many cases, there are ways to maintain life insurance coverage after losing your job. Here are some of the most common scenarios and the steps you can take:- COBRA Continuation Coverage
- What to Do: Contact your employer’s HR department immediately after your layoff to inquire about COBRA continuation options. If eligible, you can elect to continue your group life insurance coverage, though you will be responsible for paying the full premium.
We contacted Trief, Olk & Dror to help us with a life insurance issue and Shelly Friedland was the attorney assigned to our case. Before Shelly took our case she explained to us that the likelihood of our success without going to court was possible but not likely. Unfortunately we did not get the outcome we had hoped for but it was our decision to not move forward and have our case litigated. Shelly is very knowledgeable and was very straight-forward in her assessment of our case as we moved forward. She was very patient and thorough in answering our questions. She always responded in a timely manner and listened to our concerns. We would certainly recommend Shelly and would use her firm again in the future.”
- John Ramig
If there is any possibility of winning your life insurance case – this is the place to do it for you. They are efficient, honest and will achieve the best possible outcome.
Shelly Friedland worked on my case where a life insurance policy had lapsed and was even a few days beyond the grace period. Farmers had rejected my claim twice and was unwilling to take a second look. Shelly was able to get them to pay the entire claim without going to court, and the full amount was deposited in my account within a couple months. Highest recommendation.”
- Kathleen Brown
Trief, Olk & Dror is a superior law firm. Their attorneys and other legal professionals have a brilliant understanding of the law and the litigation process. They diligently perform their work in an efficient, strategic and cost-effective manner to ensure the best possible outcomes for their clients.
- Christopher Hughes
- Conversion to an Individual Policy
- What to Do: Review your life insurance policy or speak with your HR representative to find out if you have the option to convert your policy to an individual one. If so, request the necessary forms and deadlines to make the conversion before the coverage ends.
- Portability
- What to Do: Inquire with your HR department about portability options. If available, they will provide you with the necessary paperwork and guidelines for keeping your coverage active.
Settlements & Verdicts
What to Do If Your Group Life Insurance Claim is Denied
Finding out that your life insurance claim has been denied can feel like a punch to the gut, especially when you’re already dealing with the stress of being laid off. There are various reasons why a group life insurance claim could be denied, including issues with coverage lapses, missed deadlines, or disputes over the cause of death. If this happens to you, it’s important to know that you still have options.Step 1: Review the Denial Letter Carefully
When your life insurance claim is denied, you’ll receive a denial letter from the insurer explaining the reason for the denial. This letter is crucial because it tells you why your claim was denied and outlines the steps you can take to appeal the decision. In some cases, the denial may be due to missing information, or there may be a misunderstanding about the specifics of your coverage.Step 2: Appeal the Decision
Most life insurance companies offer an appeal process that allows you to challenge their decision. During this process, you can provide additional documentation or clarification that might support your claim. If the denial is based on an error or a misunderstanding, an appeal can often result in a successful resolution.- What to Do: Write an appeal letter to the insurer, explaining your situation and providing any necessary supporting documents. You may also want to enlist the help of a life insurance lawyer to guide you through the appeal process.
Step 3: Seek Legal Help
If your claim remains denied after an appeal, or if you believe the denial was unfair or based on invalid reasons (such as improper policy cancellation), it may be time to seek legal help. An attorney specializing in life insurance claims can review your case, identify any legal errors, and help you take legal action if necessary.- What to Do: Reach out to a life insurance attorney, like those at Trief, Olk & Dror, who have experience handling claim denials and disputes. A lawyer can help you understand your legal rights and explore the best course of action for securing the benefits you’re entitled to.
Exploring New Life Insurance Options
If you’re no longer able to continue your group life insurance or if the claim denial was not resolved in your favor, you may need to explore new life insurance options. Although transitioning to an individual life insurance policy after losing your job can be more expensive, it’s an important step to ensure that your loved ones are financially protected.Consider Individual Life Insurance Policies
When you apply for an individual life insurance policy, you’ll typically need to go through a medical underwriting process. This means your health will be evaluated, and your premiums will be based on factors like your age, medical history, and lifestyle.Term Life Insurance vs. Whole Life Insurance
There are two primary types of individual life insurance policies to consider: term life insurance and whole life insurance. Term life insurance provides coverage for a set period (such as 10, 20, or 30 years) and is typically more affordable. Whole life insurance provides coverage for your entire life and builds cash value over time, but it can be significantly more expensive.- What to Do: Shop around and compare quotes from multiple life insurance providers to find a policy that fits your needs and budget. Work with an independent insurance agent if you need help understanding the different options.