Group Life Insurance Conversion Calculator (2026): Port It, Convert It, or Buy New?
Most working Americans own life insurance they cannot keep. The group policy your employer bought covers you only while you are on the payroll — when the job ends, the coverage ends with it, usually on your last day or at the end of that calendar month. What almost nobody explains at the exit interview is that you have a short, legally defined window to keep that coverage anyway: portability (keep the same group term policy and pay the carrier yourself) or conversion (turn the ending group amount into an individual permanent policy from the same insurer, with no health questions asked).
This calculator prices all three exits side by side — port it, convert it, or buy a new individually owned policy — using the age-banded group rate schedule real carriers use for ported coverage and attained-age whole life rates for conversion. It also tells you how many days are left in your election window, what the guaranteed-acceptance route costs you in extra premium, and how far short your employer’s coverage falls of what your family actually needs.
Your three exits, priced
New term is the cheapest routePorting the same $150,000 costs $55.00 a month and rises with every five-year age band. Converting to permanent coverage costs $228.00 a month because conversion is priced at your attained age, never at the group rate.
Your cheapest available route, priced on $150,000 of coverage.
Port the group policy
10-year total: $8,580. Covers 10 of 10 years, then your age ends portability.
Convert to permanent
10-year total: $27,360. No health questions, priced at attained age, level for life.
Buy new individual term
10-year total: $1,872. Requires underwriting — that is the trade for the price.
Coverage gap after the job ends
A 10x income target is $850,000. The group policy was never going to close that gap on its own.
Election deadline
The clock starts the day coverage ends, not your last day at work. Confirm that date with HR.
Cost of guaranteed acceptance
Conversion minus new term: $25,488 over 10 years. That extra premium is the price of skipping the exam.
What actually happens to your group life insurance when you leave
Group life insurance is not your property. The contract is issued to your employer, and you are a covered person under someone else’s policy. Eligibility is the whole mechanism: the moment you stop being an eligible employee, the insurer’s obligation to cover you stops too. In practice that means coverage ends on your last day of work under some plans and at the end of the calendar month under others — which is why the single most important number in this entire process is the exact date your coverage terminates, not your resignation date.
There is usually a short death-benefit grace period of roughly thirty days after coverage ends. A death inside that window is generally still payable under the employer’s contract. After it, the group policy is simply gone — and if you did nothing during the window, you have zero coverage from that plan no matter how many years you paid into it. That asymmetry is what makes the election window the most valuable 31 days in an employee’s insurance life.
Access to group life is the exception, not the rule
According to the Bureau of Labor Statistics, only about 59% of private-industry workers had access to any employer-provided life insurance in 2025, ranging from roughly 39% at small employers to 87% at large ones. If you are one of them, you also probably received about one times salary — the most common employer benefit — which is a fraction of what a family with a mortgage and children actually needs. And above $50,000 of employer-paid coverage, the excess shows up as taxable imputed income on your W-2 under Section 79 of the Internal Revenue Code, a detail higher earners rarely see until tax season.
The three exits, compared
| Exit | What it actually is | Health questions | What it costs | How long it lasts | Best for |
|---|---|---|---|---|---|
| Portability | Keep the same group term certificate, pay the carrier directly instead of payroll deduction | None | Group age-banded rates, no longer subsidized, and every band is more expensive than the last | Term. Usually capped at a percentage of your coverage with a maximum (commonly $250,000), and typically ends at 70 | A one-to-three-year bridge while you job-hunt, or anyone with a health history who needs term coverage now |
| Conversion | Turn the ending group amount into an individually owned permanent policy from the same insurer | None — a guaranteed-issue right | Attained-age whole life or universal life rates, frequently three to five times the group rate | Permanent. Level premium for life, builds cash value, cannot be cancelled for health | Anyone who cannot pass underwriting, or who wants lifetime coverage and will pay for the guarantee |
| New individual policy | Buy your own term or permanent policy on the open market, from any carrier | Yes — questions, records, often an exam | The cheapest price available for your health class; level premiums that never step up by band | Whatever term you choose, and it stays yours through every future job change | Most people, especially under 55 and in good health |
| Do nothing | Coverage terminates when eligibility ends | Not applicable | $0 today, and a fully uninsured household tomorrow | None | Nobody with dependents or debt |
The 31-day clock, and the 91-day rule nobody mentions
The election window is contractual, not negotiable. At most major carriers — MetLife, Sun Life, Prudential, Securian, The Standard, Lincoln, Unum — you have 31 days from the date your group coverage ends to submit the application and the first premium payment. Not the application alone: both. A few plans apply a late-notice rule that gives you up to 15 days from the date the notice reaches you, but that relief never extends the election right past 91 days from the date coverage ended. Past 91 days, the guaranteed right is gone and you are back in the ordinary market, answering health questions like everyone else.
| Rule | What it says | Why it matters to you |
|---|---|---|
| Standard election window | 31 days from the date group coverage ends, application and first premium both submitted | Miss it and the guaranteed-issue right is forfeited — permanently, not temporarily |
| Late-notice provision | Up to 15 days from the date the portability or conversion notice arrives | Protects people whose HR department never sent the letter; still never past 91 days |
| State conversion statutes | Many states grant a conversion right by law (for example SDCL 58-16-39), usually on the same 31-day terms | A legal right, not a plan feature — and the policy form is limited to permanent coverage |
| The coverage end date | Your last day worked, or the last day of the month you left | This date — not your resignation — is day zero for every clock above |
| Amount limits | Ported or converted amounts are often capped at a percentage of voluntary coverage with a dollar maximum | You may not be able to keep all of it, which is why partial conversion is common |
| Age cutoff | Ported group coverage typically terminates at age 70; some plans stop at 65 | Portability is a bridge to something else, never a lifetime solution |
The six-step election sequence
- Get the coverage termination date in writing from HR or the benefits administrator. Everything is measured from that date.
- Request the portability and conversion forms the same week. They are not automatically mailed, and they are not posted on the intranet.
- Find out which rights your plan actually grants. Conversion is nearly universal; a portability rider is a plan-by-plan feature and is less common.
- Choose how much to keep. You can usually port or convert all or part of the ending amount — and the caps mean full replacement is often impossible.
- Get a quote from the open market in parallel. A healthy applicant can price a new term policy in fifteen minutes online, which is the only way to know what the guarantee is really costing you.
- Submit the application and the first premium before day 31. Keep the timestamp. The deadline is enforced literally.
What portability really costs: the age-band schedule
Ported coverage is priced by age band, and the bands are not gentle. The representative schedule below reflects the ported employee rates carried by major group carriers in 2026 (the Securian/Minnesota Life schedule is a good published benchmark). Two things jump out when you read it as a table: the cost per thousand roughly doubles between each ten-year band, and most carriers add a $3 to $5 administrative fee to every billing statement on top of the rate.
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| Age band at attained age | Monthly rate per $1,000 of coverage | Monthly cost of porting $250,000 | Reality check |
|---|---|---|---|
| 25 – 29 | $0.09 | $22.50 | Cheaper than most underwritten term — porting is a genuine bargain here |
| 30 – 34 | $0.11 | $27.50 | Still competitive with retail term with no exam required |
| 35 – 39 | $0.15 | $37.50 | New term usually wins on price; porting wins on convenience |
| 40 – 44 | $0.20 | $50.00 | The gap between ported and retail term starts to widen |
| 45 – 49 | $0.34 | $85.00 | The band increase — not your age — is doing most of the damage |
| 50 – 54 | $0.56 | $140.00 | Now clearly more expensive than a healthy applicant’s retail term |
| 55 – 59 | $0.80 | $200.00 | Two to four times the cost of retail term for the same face amount |
| 60 – 64 | $1.13 | $282.50 | Porting becomes a health-driven decision, not a price decision |
| 65 – 69 | $1.97 | $492.50 | Final band before ported coverage typically terminates outright |
| 70 and over | Not available | — | Ported group coverage generally ends at 70; conversion is the only guarantee left |
Three things people get wrong about porting
- Thinking portability is automatic. It is an election. No form, no premium, no coverage — even if you kept paying something through payroll by mistake.
- Assuming the rate is locked. Ported rates step up every five years with the band. The premium you accept at 49 can double by 54 whether or not your health changes.
- Treating a continuation as a plan. With a $250,000-style cap and a cutoff near 70, ported coverage buys time. It does not replace the coverage you were relying on.
Why conversion is the most expensive guaranteed coverage you can buy
Conversion works by statute and by contract: the insurer must issue you permanent coverage without evidence of insurability, but it gets to price that coverage at your attained age using standard rates. It cannot ask whether you are healthy — and so it assumes a blended risk, charges a permanent-product premium, and hands you whole life or universal life instead of the term coverage you had. A 45-year-old converting $150,000 should expect roughly $228 a month, against $15.60 for a medically underwritten term policy at a good health class and $55 for porting the same group certificate. The gap is not a rip-off; it is the stated price of not answering a single health question, and for someone with a serious diagnosis it is the difference between having coverage and having none.
One structural limit is worth knowing before you plan around conversion: the conversion amount cannot exceed the group coverage that ended, and the policy form cannot be term. Most state conversion statutes say explicitly that the converted policy may be any form the insurer customarily issues except term insurance. So whatever you convert becomes a permanent policy priced at today’s attained-age permanent rates — the permanent coverage is real, but you should convert deliberately, and usually only for the portion of your need you want to keep for life.
Your group coverage was probably never enough
The most common employer benefit is one times salary. The most common professional recommendation is ten to fifteen times income, adjusted for a mortgage, debts, childcare and education. Run those two numbers against each other and the “I’m covered at work” assumption collapses: a household earning $85,000 is typically carrying $85,000 of employer coverage against a $850,000 need. Job change is the moment that gap becomes visible, because it is the first time you have to replace the coverage with your own money.
| Path at the calculator’s default inputs (age 45, $150,000, non-smoker, male, good health) | Monthly premium | 5-year total | 10-year total | 20-year total |
|---|---|---|---|---|
| Port the group certificate | $55.00 | $3,300 | $8,580 | $26,430 (two further band increases; ends at 70) |
| Convert to permanent whole life | $228.00 | $13,680 | $27,360 | $54,720 |
| Buy new individual 20-year term | $15.60 | $936 | $1,872 | $3,744 |
| Do nothing and rely on the new employer’s plan | $0 | $0 | — | Zero coverage in the gap, and one times salary afterwards |
Read that table as a decision, not a ranking. The permanent column is the only one that is still paying a death benefit at 85, which is why conversion is not simply “the expensive option” — it is a different product with a different job. Portability is a bridge with an expiry date. New term is the cheapest way to protect a family for a defined period of obligation, and it is the only one of the three that is portable across every future employer without an election window.
How the calculator prices each path
The tool deliberately uses your own facts rather than a single blended quote. Portability is priced from the 2026 group age-band schedule shown above, applied to the lower of your ending coverage and the $250,000 ported cap, plus a $4 monthly administrative fee. Conversion is priced from attained-age standard whole life rates, interpolated by year of age, with no health class applied — because the guarantee is the health class. New term is priced from 2026 retail rates by age and sex, then multiplied by your health class (0.85 for excellent, 1.35 for fair, 2.10 for poor, and unavailable entirely at the serious tier) and by 2.30 for tobacco. Totals run year by year, so ported coverage correctly steps up when you cross a band and correctly stops when the age cut-off arrives.
What to ask HR before your last day
Walk into the exit conversation with these six questions and you will leave with everything the calculator needs. The answers come from your Summary Plan Description, not from the general benefits brochure.
- What is the exact date my group life coverage terminates — last day worked, or end of the month?
- Does the plan offer portability, conversion, or both, and what is the election deadline for each?
- How much can I port or convert — is it the full amount, or a percentage with a maximum?
- What is the ported rate schedule and the administrative fee, and at what age does ported coverage end?
- Is my supplemental or voluntary coverage governed by the same rules as the employer-paid base amount?
- Will I receive written notice of these rights, and when?
The bottom line on group coverage
Employer life insurance is a benefit, not a plan. It is free or nearly free, it usually replaces one year of income, and it disappears the day you stop being eligible — which is precisely the day your family’s need for it does not disappear. The 31-day window after a job change is the only point in the process where you have a guaranteed right to coverage regardless of your health. Use the calculator above to put a price on each exit, then decide with both numbers in front of you: the premium today, and the cost of being uninsured in the gap.
Watch: conversion versus portability explained
This short walkthrough covers the same three-way decision from the policyholder’s side — what conversion and portability actually mean when a job ends, and why the election deadline does most of the deciding.
Key takeaways
- Group life coverage is tied to eligibility, not loyalty. It ends when the job ends, and the 31-day election window starts on the coverage termination date — not your last day at work.
- Portability is term coverage at age-banded group rates with no health questions. It steps up every five years, is usually capped, and generally ends at 70.
- Conversion is permanent coverage at attained-age rates with no health questions. It costs multiples of retail term because the guarantee, not the product, is what you are buying.
- For most healthy applicants under 55, an individually owned term policy is cheapest, level, and portable across every future job — with no deadline attached.
- Whatever you choose, do it in the window. After 91 days the guaranteed right is gone, and the only remaining path is full underwriting.
Frequently Asked Questions
What happens to my group life insurance when I leave my job?
It terminates. Group coverage is issued to the employer, and your eligibility ends when employment ends — usually on your last day or at the end of that calendar month, often after a short death-benefit grace period of about 30 days. You can typically keep it by electing portability or converting it to an individual policy, but you must apply and pay the first premium within the plan’s election window, most commonly 31 days.
What is the difference between portability and conversion?
Portability keeps the existing group term certificate alive and moves the premium bill from your employer to you; the coverage stays group term, at age-banded rates that step up every five years. Conversion ends the group coverage and replaces it with an individually owned permanent policy — whole life or universal life — from the same insurer, priced at your attained age with no health questions. Port is temporary and cheap at younger ages; conversion is permanent and expensive at every age.
How long do I have to port or convert my group life coverage?
Thirty-one days from the date your group coverage ends at most major carriers, and you must submit both the application and the first premium inside that window. Plans with a late-notice provision may give you up to 15 days from the date the notice reaches you, but no plan extends the right beyond 91 days from the coverage end date. Many states also grant a conversion right by statute on similar terms.
Is ported group life insurance worth it?
It depends entirely on your age and health. Under 40, ported rates are often competitive with retail term and require no underwriting, which makes porting genuinely attractive. Past 50, ported rates routinely cost two to four times a healthy applicant’s retail term premium for the same face amount, and the coverage is capped and generally ends at 70. For healthy applicants, porting usually makes sense only as a short bridge; for anyone with a health history that would block a new application, it can be the only term coverage available.
Can I convert group life insurance to term instead of whole life?
Usually not. Most state conversion statutes and plan documents specify that the converted policy may be any form the insurer customarily issues except term insurance, which is why conversion lands you in a permanent product priced at attained-age rates. If you specifically want term coverage after leaving a job, the practical routes are portability (where the plan offers it) or a new individually underwritten policy.
Does group life insurance count toward how much coverage I need?
Only while you have it, and usually for far less than you need. The most common employer benefit equals one times salary, while a typical planning target is ten to fifteen times income for a household with a mortgage and children. Treat employer coverage as a supplement you will eventually replace, not as the foundation of your family’s protection — and re-check it every time you change jobs.
Is employer-paid group life insurance taxable?
The first $50,000 of employer-provided group-term coverage is tax-free. Coverage above $50,000 creates imputed income under Section 79 of the Internal Revenue Code, which is reported on your W-2 and taxed as wages using an IRS rate table based on your age. The death benefit itself remains income-tax-free to your beneficiary under Section 101(a).
Related Resources
- Life insurance when changing jobs: what happens to your coverage
- Group life insurance explained: employer coverage, limits and imputed income
- Convertible term life insurance: how the conversion privilege works
- Converting federal SGLI coverage to private term life insurance
- No medical exam life insurance: what you give up for guaranteed acceptance
- Guaranteed issue life insurance: eligibility, limits and real costs
- IRS Publication 525 — taxable and nontaxable income, including Section 79 imputed income
- U.S. Department of Labor — Employee Benefits Security Administration
- AM Best — check the financial strength rating of the carrier behind your group plan
This calculator models the standard group life portability and conversion provisions used by U.S. carriers in 2026 — a 31-day election window with a 91-day maximum under late-notice rules, age-banded ported rates, attained-age conversion pricing without evidence of insurability, and income-tax-free death benefits under IRC Section 101(a). Premium estimates are illustrative, based on published 2026 retail term rates and standard whole life conversion rates, and are not offers of insurance. Your plan document, your state’s insurance code and the carrier’s filed rates control every number here. This is educational information, not legal, tax or insurance advice; speak with a licensed agent about your own coverage.
