Basic Life Insurance: Conclusion of Coverage

Coverage under your basic life insurance policy will terminate at the end of the month in which you separate from state service.

During a Layoff
If you are laid off from state employment, you may have the option to continue basic life insurance at group rates for one year. If you choose to do so, you will need to pay a full year’s premium at the beginning of the year from the date you were laid off. You can find the form (ADM 4302) online, or from your personnel office.

After the first year, the policy can be converted to an individual policy. If you return to work within one year from the date you were laid off, any unused premium will be refunded to you.

During a Disability
If you are on approved disability leave, the state continues to pay for your life insurance premium for up to one year.

Conversion to an Individual Policy
Once you are no longer employed with the state of Ohio, through any means except layoff, your supplemental life insurance coverage will terminate and you will have the opportunity to either convert or port your coverage. You may exercise only one of these options which are explained below.

Conversion
The conversion feature allows you to transfer your basic (group) life insurance to a permanent (cash value) insurance. It provides life-long protection as long as you continue to pay the premiums. The premiums are based on your age at the time of purchase and increase annually. You may not convert the occupational accidental death and dismemberment feature of your coverage.

Because premiums increase annually, permanent insurance is more expensive than term insurance; however, permanent insurance accumulates cash value, which may be refundable upon surrender of the policy.

Under the conversion feature, premiums are payable to age 100 or death, whichever occurs first. If you elect to convert your policy, you must apply for the individual policy and submit the first premium payment to the insurance company within 45 days of your loss of coverage. The minimum amount of coverage you may elect is $2,000. You do not need to provide evidence of good health.

Portability
You also may port your basic life insurance policy. Portability is a less expensive option than the conversion option because the coverage provided remains term insurance and does not build cash value.

To qualify for the portability option, you must apply for the continuation within 31 days of the date of the termination of coverage. You do not need to provide satisfactory evidence of insurability (proof of good health).

The Application for Portability form is available to download here.