The moment this becomes urgent
Group life insurance through an employer feels permanent while you're working — it's deducted automatically, nobody thinks about it, and the coverage is just there. The moment you leave that job, whether by choice, layoff, or retirement, that coverage typically ends on your last day or shortly after. Most people don't think about replacing it until they need it, which is exactly backwards: the window to act is short, and it closes fast.
What the conversion privilege actually gives you
Most Canadian group life plans include a conversion privilege — the right to convert some or all of your group coverage into an individual policy without answering any health questions or taking a medical exam. This is the single biggest reason to know about it: if your health has changed since you first got group coverage, this may be the only way to get guaranteed coverage at any price, let alone a reasonable one.
The catch is timing. Insurers typically require the conversion to happen within 31 days of your group coverage ending — miss that window, and the no-health-questions guarantee disappears, leaving you to apply for new coverage through normal underwriting, however your health looks at that point.
Why this catches people off guard
Leaving a job is already a busy, stressful period — paperwork, benefits transitions, sometimes a job search. A 31-day insurance deadline is easy to miss entirely, especially if no one flags it. If you're reading this and recently left a job (or are about to), this is worth checking today, not after things settle down.
Recently left a job, or planning to? We can check your conversion window and what it would cost to convert.
Book a CallConvert, or apply for new coverage? How to decide
- Convert if your health has changed since you first qualified for group coverage — a new diagnosis, a new medication, anything that could affect a fresh underwriting decision.
- Convert if you want certainty fast — no health questions means no waiting on underwriting, which matters if you want coverage in place immediately.
- Apply for new coverage instead if you're healthy and want more choice — a fresh application opens up term options, different coverage amounts, and competitive pricing across multiple insurers that conversion doesn't offer.
- Do both, if it makes sense — convert a portion to lock in guaranteed coverage, and apply separately for additional term coverage at standard rates if you qualify.
The trade-off: guaranteed approval, but at group-to-individual pricing
Converted policies are typically priced using the insurer's standard individual rates for your age — so they usually cost more per dollar of coverage than the group rate you were used to, which was subsidized by being pooled across an entire workforce including younger, healthier employees. If you're healthy, a fresh individual application (with new underwriting) is often cheaper than converting. If your health has changed, conversion can be the only guaranteed option, even at a higher price — and in that scenario, it's usually worth it regardless of cost.
Replacing group coverage you've lost for good
Whether or not you convert, it's worth treating a job change as a trigger to review your life insurance from scratch — group coverage is usually capped at 1–2x salary, which is rarely enough on its own. See our guide to how much life insurance you actually need to size coverage properly, whether you convert, apply fresh, or both.
