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Conversion Privilege

  • Upon terminating employment within the class or classes of insured employees, the employee will be entitled to issuance—by the Company, without need for evidence of insurability, through the corresponding application to the company within a period of thirty-one (31) days after said termination, and through payment of the premium that applies to the risk class that the employee belongs to and the form and amount of the policy at the age reached—of an Individual Direct Payment Life Insurance Policy in any of the forms usually issued by the Company (with the exception of a term Policy, or a policy that provides benefits in case of total and permanent disability or additional benefits in case of accidental death). Said Direct Payment Individual Life Insurance Policy will be issued for an amount equal to, or at the employee’s request, lower than the amount of their insurance under the canceled policy due to termination, except that, in the case of an employee who, after said termination, continues employed by the Employer but under a non-insured class, the amount for which said Direct Payment Individual Life Insurance Policy is issued will not exceed the insurance amount for their life under the canceled policy by said termination minus any life insurance amount, through which they are or may become eligible under any other group policy within the thirty-one (31) days following the date of said termination. Said Direct Payment Individual Insurance Policy, if issued, will be elective to the issuance of the thirty-one (31) days following the day on which the employee was terminated, providing that the corresponding premium will be paid to the company no later than the effective date.
  • After the Policy ends – Should this policy end or be amended to terminate the insurance of any of the insured employee classes, each employee whose insurance is terminated due to these causes and who has been continuously insured under this policy, or under any replacement policy, for three (3) years or more immediately before said termination, will be entitled to receive the same benefits and under the same conditions and limitations set forth in the previous paragraph for an employee who terminates work, except that the life insurance converted amount will not exceed the lesser of:

    • $4,000.00 or
    • the employee’s life insurance amount that ends under this policy due to termination or amendment as of the date of said termination, minus the insurance amount for which they may be eligible under another group policy issued or reinstated by the Company or any other insurer as of thirty-one (31) days from the date of said termination.

 

Extended Death Benefit

  • Should evidence be received from the employee, whose insurance ended due to employment termination in the class or classes of insured employees, who died within thirty-one (31) days from the date on which their employment was terminated, the company will pay the beneficiary an insurance amount equal to the one the employee would have been entitled to had they converted their insurance to an individual policy issued under paragraph A of the section entitled Employee’s Conversion Privilege.
  • If the dependents’ insurance ended as a result of the employee’s death and the dependent dies within a six-month (6) period
    from the date of the employee’s death or if the dependent’s insurance ended as a result of the insured employee’s work termination within the class or classes of insured employees under this group policy or due to retirement by pension and the dependent dies within the thirty-one (31) day period from the date of employment termination or retirement by pension, the company will pay the amount for which the dependent’s life was insured at the time the policy ends.
  • If the insurance of the employee or their dependent ends due to termination or amendment to said policy that replaces three (3) consecutive years or more, immediately from the date of said termination, and upon receiving evidence that the employee or dependent has died within a thirty-one (31) day period from said termination, the company will pay to the employee’s or dependent’s beneficiary $4,000 or the insurance amount for which the employee or their dependent was insured, reduced under any group policy issued or reinstated by the company or any other insurer after said termination, the lesser of the two amounts.
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