What happens to my group life insurance when I retire?

Question

As a Canadian high school teacher, what should happen to my group life insurance when I retire? Am I still covered? Is it worth forking out another $400 a year while I am still young for full-time life insurance, or is my group insurance good enough?

Answer 1

Pay for your own coverage. Typically it pays out faster than group and you can keep it regardless of job status (so long as you can pay the premiums).

Answer 2

You should get atleast a small (10K or more) policy outside your work. yes, you think you'll always be employed-- but stop and think about it. What if you get any kind of sickness that ultimately causes your death? Likely you'd stop working as your health dwindled-- and POOF there goes your life insurance. Not only that, but once you're diagnosed, you wouldnt' qualify for any other policies-- they ask for a health history. At your age, a 10K policy would probably only cost a few bucks a month and would atleast cover the funeral. Anthing you can afford to buy above that is good for your children. Don't rely just on your job. The other problem is in 10,20,30 years, a life insurance policy will be MUCH more expensive to start/buy than if you do so now.... so if you lose your job buyuing that "third party" policy will cost you much more.

Answer 3

I'm not familiar with Canadian insurance but you should speak to your group plan administrator and find out what happens when you retire. Some plans will continue to cover qualified retirees up to a certain amount. Otherwise, you'll need to look into converting to a private policy. Your group administrator can give you information.

Answer 4

YOU no longer belong to the group so you Will have to convert it to an individual policy. You will probably want to get a term policy offers coverage for a specified period of time with a specified dollar amount payable at death to your beneficiary. Good for mortgages loans or debits. A permanent policy will be more expensive but this policy will last until 100 and build up cash value you can borrow against the death benefit. Talk to an agent they will better be able to evaluate you needs.

Answer 5

It goes away - they stop paying the premiums on your behalf. by the time you retire, you shouldn't need much life insurance, basically just a burial policy