If you have a life insurance policy paid for by your employer as part of your compensation, you may not be aware of exactly how this policy works if you were to get fired. In fact, you can keep your coverage – but only if you act quickly. Keep reading to learn more and remember that The Law Offices of Larry H. Parker offers employment law services to people who have issues with their employers.
You Do Not Have to Take a New Medical Exam to Continue Coverage
The law states that not only can you take over your life insurance policy, but you do not have to take part in a new medical exam to do so. You can take your group policy and convert it to an individual one. More importantly, the insurance company does not have the right to require a new medical exam or physical before giving you this new policy.
Yes, even if you have already been diagnosed with a serious, fatal illness, even if you are no longer able to work due to that specific illness, you can keep the same terms for your policy – assuming you take the right actions.
It is Essential to Act Now
While it may come as relieving news that you can keep your policy, you must act quickly. In this case, you have just 30 days after your job has been terminated to convert it to a personal plan. If you miss that deadline then your policy could be gone forever. Your employer should make you aware of this deadline – it is their legal responsibility to do so. They should also give you detailed instructions on what is required of you to switch it to a personal policy.
It is Possible Your Employer Could be at Fault if You Miss the Deadline
There is one scenario in which you could miss the deadline and still be entitled to your policy: If your employer does not inform you of your rights and your obligations to secure those rights. In this case, the legal responsibility is no longer yours and now belongs to your former employer. If this is what has happened to you, then now would be a good time to contact a personal injury attorney.
While it may not be possible to have the policy reinstated, it could be possible to hold your former employer accountable to pay the entire policy payout. These cases are rare but they do happen. The key is to know your rights as an employee so that you know when you are being taken advantage of.