$150,000 Denied Life Insurance Claim Successfully Settled
We are pleased to share the successful resolution of a $150,000 life insurance claim that was originally denied. The claim involved an employer-sponsored life insurance policy and raised questions about the insured’s eligibility after leaving the company. The insurer claimed the policy had lapsed due to a lack of continued coverage, but after a thorough investigation, our firm proved that the insured should have been allowed to convert or port the coverage. As a result, the full benefit was paid to the rightful beneficiary. This case highlights how portability and conversion options can directly impact the outcome of life insurance claims—especially after job loss, retirement, or resignation.
What’s the Difference Between Portability and Conversion in Life Insurance?
Portability and conversion are two distinct options available to policyholders when they leave a job with employer-provided life insurance. Understanding these terms is critical for protecting your right to continued coverage—and for fighting back if your claim is denied.
Portability
Portability refers to the ability to continue your group life insurance coverage after employment ends by transferring it to a similar group plan with the same insurer. Unlike buying a new policy, portability allows you to keep your existing coverage—often at group rates—without undergoing a medical exam.
Key features of portable life insurance:
The coverage remains with the same insurance company
You must elect portability within a limited timeframe after leaving your job (typically 30–60 days)
Coverage continues at your own expense—you pay the premiums directly
It may offer only term coverage with no cash value or permanent features
Conversion
Conversion allows you to convert a term group policy into a permanent individual policy, such as whole or universal life. This option is especially useful if you're older or have health conditions that make obtaining new life insurance difficult or expensive.
Key features of conversion:
Converts group term coverage into individual permanent life insurance
No medical exam is required
Premiums are typically higher, reflecting lifetime coverage
Provides lifelong protection and may accumulate cash value
Bottom Line:
Portability = continue term coverage with the same insurer
Conversion = switch to a permanent, individual policy
Why Portability and Conversion Matter in Denied Life Insurance Claims
When an employee leaves a job, the employer and insurer are legally obligated to notify them of portability and conversion options. If they fail to do so—or if the forms are not processed correctly—coverage may lapse, leading to a denied claim if the insured dies shortly after separation.
We’ve seen numerous cases where:
The employer never informed the employee about conversion rights
The employee submitted conversion paperwork, but the insurer failed to process it
The insured believed coverage continued due to premium deductions or verbal assurances
The insured died during the window for converting or porting the policy
In these situations, the beneficiary may still have a valid legal claim, especially if there’s evidence that the insured attempted to maintain coverage or relied on misleading information.
Our attorneys have recovered benefits in cases where insurers wrongfully denied claims involving MetLife, Prudential, Cigna, Hartford, Sun Life, and others—all tied to confusion over portability and conversion.
Frequently Asked Questions
What is portability in life insurance?
Portability allows a departing employee to continue their group term life insurance coverage by paying premiums directly to the insurer, typically without a medical exam.
What is conversion in life insurance?
Conversion is the process of turning a term life insurance policy into a permanent individual policy. It offers lifelong coverage and is often used by those who cannot qualify for new insurance due to age or health.
How long do I have to elect portability or conversion?
Most policies require you to act within 30–60 days of losing employer coverage. Missing this deadline could result in policy termination and loss of benefits.
Does portability mean I can take my policy to a different insurance company?
No. Portability typically means continuing the same policy with the same insurer, not switching companies.
If my employer never told me about conversion options, can I still get paid?
Yes. If the employer or insurer failed to notify the insured of their rights, courts may hold them responsible for the resulting coverage gap. These are often strong legal claims.
Can I convert a policy after it lapses?
Usually not—but if the lapse occurred due to a lack of notice or administrative error, your attorney may be able to challenge the denial and recover the benefit.
Do portable policies stay in effect forever?
No. Portability generally continues term coverage only, which may expire at a certain age or after a set number of years.
Can both portability and conversion be offered together?
Yes. Some employer plans allow both options, and the insured may choose based on cost, age, and desired coverage type.
What if my claim was denied because the insured didn’t convert or port the policy?
You may still have legal grounds to contest the denial—especially if the insured tried to maintain coverage or was never properly informed of their options.
How can your firm help with denied life insurance claims involving portability or conversion?
We investigate whether the insurer or employer failed to meet their legal obligations and work to recover the full death benefit. We’ve handled ERISA-based claims, interpleaders, and administrative errors—all related to employer life insurance.