Portable coverage is an insurance term that refers to an insurance policy that can be continued with the same level and format of coverage when the insured changes employers or retires. When employees have policies, tthose plans are active as long as they are employed. When an employee stops working, retires or changes employment, the group coverage may no longer be available to him. In such cases, the insured will ask to port his coverage or, in other words, change it to an individual plan providing the same protections.
When an employee decides to port his coverage, he will be asked to complete and sign a portable application. Such an application is very similar to a regular life insurance application. In some cases, it does not contain any health questions and may confuse the insured regarding the coverage it guarantees. What is important to know is that a portability coverage application is similar to a basic life insurance application in that it may be contested by the insurance company if it was not in effect for 2 years from the date of issue to the insured's death.
This all sounds confusing and unfair. Many of our clients feel they were cheated by large insurance companies when the life insurance benefits were denied to them after the death of a loved one. Our life insurance attorneys are prepared to fight on behalf on beneficiaries and against insurance companies. We obtain favorable results in court and in out-of-court settlements. Our life insurance attorneys know how to hold insurance companies accountable for the ambiguous language in the polices and the unfair tactics they employ in denying claims.
If your loved one's portable coverage was approved, but then after the death the insurer refused to pay your claim, call us for help. We have helped many people recover money after a wrongful denial of benefits under portability coverage. Our firm has had success 100% of the time handling these claims.