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How long does Group Term Life Insurance last?

Canadian LIC
Canadian LIC

Canadian LIC

CEO & Founder

  • 11 min read
  • March 3rd, 2025

SUMMARY

This blog explains how long Group Term Life Insurance lasts, which typically ends when you leave your job. It covers options for continuing coverage, such as converting to an individual policy, buying a new Term Life Insurance plan, or exploring employer-sponsored options. The blog also discusses the benefits of Individual Life Insurance, how to compare Term Life Insurance costs, and provides tips for finding affordable coverage through online plans and expert agents in Canada.

Introduction

When it comes to ensuring the financial future of your loved ones, Life Insurance is an important tool. Most Canadians have Group Term Life Insurance, often through their employer. One of the most common questions we receive, though, is: How long does Group Term Life Insurance last? This consideration is all the more relevant for people who are looking down the barrel of major life transitions, whether that is a transition in jobs, a retirement or even a job loss. In this blog, we’ll dive deeper into Group Term Life Insurance, explore how long it lasts, and share how to get continued coverage.

You may have asked, “I’ve learned that I have an affordable Group Term Life Insurance Plan through my job, but what happens when I terminate my employment?” Or maybe, “How long am I covered by this insurance after retirement?” These are the questions many Canadians deal with. If you’ve ever wondered what happens to your coverage when you leave an employer or feel confused or stressed about it, you’re not alone. It is a consideration that may be especially relevant for people who have been accessing group Life Insurance as part of their workplace benefits but never thought about how that fits into their overall Life Insurance strategy.

In this blog, we’ll look at how long Group Term Life Insurance lasts, what happens after your coverage ends, and the options you have. By the end, you’ll clearly understand what steps to take to ensure financial security—regardless of what happens to your group insurance plan.

What Is Group Term Life Insurance?

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Before we get into how long it lasts, we need to explain what Group Term Life Insurance is. Group Term Life Insurance is a type of Life Insurance policy that an employer or organization buys for its employees or members. While Individual Life Insurance is purchased independently, Group Term Life Insurance is often offered as a benefit, at little or no cost, to employees. The policy is usually a term life policy, meaning it covers you only for a set time period (generally the duration of your employment).

Group Term Life Insurance Coverage is usually inexpensive and relatively easy to get. The Group Life Insurance benefits are basic, and you don’t need to do any medical examinations to qualify for them. However, the biggest con is that the coverage lasts only as long as you are employed by the organization offering the insurance.

How Long Does Group Term Life Insurance Last?

Group Term Coverage continues as long as you are employed by the group that provides the policy. But when you leave your employment, retire or cease being a member of the group covered by the insurance policy, your coverage ends. The most important thing is that this insurance is contingent on your employment.

For instance, think if you are someone who works with an organization where you are availing a cheap group Term Life Insurance Policy. And when you leave a company or retire, your employer-offered insurance coverage will probably stop. While in many circumstances, the employer might afford you the opportunity to convert your term group Life Insurance into an Individual Life Insurance Policy, this is not a surefire assurance that it will be offered to you, and it’s typically at a vastly higher rate.

“No question. This is one of the bigger issues for a lot of Canadians who use Group Term Life Insurance for value-priced term coverage. If you are entering a major life transition, such as a job change or retirement, you want to know how your insurance coverage will change and how you should respond.

How to Transition from Group Term Life Insurance

When your Group Term Life Insurance Policy expires, there are usually three avenues to continue protecting your loved ones. It is important to be proactive and prepare for what comes next.” Here are some common options:

  • Convert Your Group Term Life Insurance to an Individual Policy: Many Group Term Life Insurance Policies include a conversion option that allows you to convert your group plan into an individual Term Life Insurance Policy without having to prove you are healthy. While this may appear to be a good deal, it typically results in a higher premium. The upside is that you are able to keep your coverage without a health examination or underwriting process.
  • Buy Individual Life Insurance: If you are not able to convert your group policy, one option is to buy Individual Life Insurance. This means you have more freedom to pick a coverage amount and terms that work for you. You may obtain Canadian Term Life Insurance policies online and compare Term Life Insurance prices to locate a program that meets your financial requirements.
  • Look into Whole Life Insurance Policy: Alternatively, there is Whole Life Insurance, which covers your whole life, compared to Term Life Insurance, which has an expiration date. But, if you want longer-term coverage to help with costs, this might be best. Term policies are typically less expensive than Whole Life Insurance, but Whole Life Policies include a savings component, accruing cash value as your policy matures.
  • Group Term Life Insurance from Another Employer: Your new employer may offer Group Term Life Insurance if you switch jobs. This means that you can retain some level of coverage with a new employer. However, you will need to review the terms of the new policy and make sure that it meets your needs.

Affordable Alternatives After Group Term Life Insurance

One of the main things people worry about when they lose group coverage is what it would cost to continue Life Insurance on their own. Some of the lower-cost alternatives for Group Term Life Insurance are:

  • Term Life Insurance: If you only need inexpensive coverage for a set time frame, Term Life Insurance is an excellent option. It provides higher coverage at lower premiums than Whole Life Insurance. You can compare and purchase Canadian Term Life Insurance plans online and select the length of the term that suits your needs best.
  • Employer-Sponsored Group Life Insurance: Depending on your career path, there may be an avenue to continue your employer-sponsored group Life Insurance policy. The premiums could be lower, and the coverage could be just right for the next stage of life.
  • Supplemental insurance benefits: Certain health and wellness programs provide supplemental insurance benefits. Although it would not be a direct replacement for Group Life Insurance, it could help cover the base level of coverage in the event of an accident or illness.

Why You Should Consider Individual Life Insurance

If you have no other Life Insurance — only relying on group terms — it may not be sufficient for your family in the long term. Group Plans are affordable and easy to sign up for but seldom offer the same flexibility and customizability offered by individual plans.

  • Choose Your Coverage: Depending on your needs, Individual Life Insurance allows you to choose how much coverage you want — from a smaller policy to a larger one that will cover debts, mortgages or education costs.
  • Add Riders: Based on your requirements, you can attach different riders, including a critical illness rider or disability riders, to your Life Insurance policy and increase the extent of your life cover plan.
  • Cash Value Accumulation: A Permanent Life Insurance Plan (like a whole life), enables the ability to grow cash value that you can take loans against or withdraw from if required in the future.
  • Portability: Individual Life Insurance is portable, which means you can take it with you wherever you go, while group insurance generally ends when you leave your job.

Group Term Life Insurance Duration: What You Need to Know

In the short term, Life Insurance through your work will continue only while you are employed by the business insuring you. Planning ahead and knowing what to expect as your employment situation changes is vital. You should:

  • Be aware of when your coverage expires: If you’re leaving your employer, make sure you know when your group Life Insurance coverage will end.
  • Investigate conversion options: Find out if you can convert your Group Term Life Insurance into an individual policy through your employer.
  • Compare Term Life Insurance costs: Walk around and examine term life coverage expenses to get the most economical inclusion.
  • Look at endowment Life Insurance: If your primary focus is ensuring that your family is taken care of for the long term, then you should look into purchasing Canadian Term Life Insurance via the Internet.

By understanding how Group Term Life Insurance works and knowing your options when it runs out, you can make sure you and your loved ones will always be covered. Whether you choose to convert to an individual plan or to purchase a new policy, acting before your coverage expires is key.

Keep that in mind as you continue on — know that you can partner with one of the best Term Life Insurance Agents in Canada to go over your options and obtain Term Life Insurance Policy Quotes Online so that you can make an informed decision about your future!

Be proactive, plan accordingly, and make sure you’re always covered at any stage of life!

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Frequently Asked Questions: How Long Does Group Term Life Insurance Last?

Group Term Life Insurance continues for as long as you work for the company that provides the insurance. If you quit your job, your coverage usually stops. As a result, it’s important to understand this timeline and prepare for what comes next.

Upon retirement, employer-provided group term Life Insurance coverage typically ceases unless your employer offers you a continuation option. You might be able to convert it into an individual policy, but that usually carries higher premiums. Always consult your employer to see what your options are.

Yes, often, the employer will have what’s called a conversion option for group-Term Life Insurance, which allows you to convert to individual coverage without having to undergo a health exam. However, individual policies are often more expensive than group ones.

Suppose you leave a job and your group Life Insurance ends. In that case, you might have options like converting to an individual policy, purchasing a new Term Life Insurance Policy or getting coverage through your next employer. This keeps you covered on Canadian Term Life Insurance Policies through its quote system.

If cost is a consideration for you, compare the price of a Term Life Insurance Policy to that of a stand-alone individual policy. These days, there is so much to choose from, and the best Term Life Insurance Agents in Canada can help you find a plan that suits you within your budget.

Individual Life Insurance is more flexible than Group Term Life Insurance. With individual policies, you can customize coverage to your needs, and your coverage is portable, so it stays with you even if you move between jobs. You can get Canadian Term Life Insurance plans online to get the proper coverage.

To find the lowest price, comparing Term Life Insurance costs is key. Through the comparison of a variety of internet providers as well as plans, you will obtain reasonably priced choices that meet your standards. The best-term life insurance agents in Canada can help you navigate the right options.

How much coverage you need depends on your financial situation — including your debts, income and dependents. If you’re not sure, an online quote for a Term Life Insurance Policy can help you evaluate what might be the best fit for your situation.

Yes, you can purchase Canadian Term Life Insurance plans online without any hurdles. That gives you a lot of choices and is a quick way to compare different offerings and find one that suits your needs.

A Life Insurance agent can guide you through the options, help you secure the right coverage and provide personalized advice. They can assist you with comparing the costs of Term Life Insurance and help you find the most affordable Group Term Life Insurance Plan or individual policy. Top-Term Life Insurance agents in Canada are professionals who understand how to walk you step by step through the process.

Compare Term Life Insurance Costs from different providers to make sure you are getting a good deal. Be sure to review the policy details, including coverage limits, exclusions, and premiums. And working with an expert, you can feel confident in the one you select.

If you don’t act at this point when your Group Term Life Insurance is over, you may end up without cover, which will risk your family with a lack of coverage in case of an unfortunate situation. You need to find a way to convert your coverage or get Canadian Term Life Insurance plans on the net to provide for the future.

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Sources and Further Reading

  • Canadian Life and Health Insurance Association (CLHIA)
    Provides information on different types of Life Insurance policies in Canada, including group term and Individual Life Insurance options.
    www.clhia.ca
  • Financial Consumer Agency of Canada (FCAC)
    Offers resources on understanding Life Insurance, comparing policies, and choosing the right coverage.
    www.canada.ca/en/financial-consumer-agency
  • Insurance Bureau of Canada (IBC)
    An authoritative source on insurance products, including Life Insurance, and how they work in Canada.
    www.ibc.ca
  • Sun Life Financial
    A leading Canadian insurance provider offering various Life Insurance options, including Term Life Insurance.
    www.sunlife.ca
  • Canada Life
    Learn more about different types of Life Insurance policies, including group and Term Life Insurance, and how to protect your family’s future.
    www.canadalife.com
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Key Takeaways

  • Group Term Life Insurance Duration: Group Term Life Insurance lasts as long as you are employed by the organization offering the plan. Once you leave your job, the coverage typically ends.
  • Conversion Options: Many employers offer the option to convert Group Term Life Insurance to an individual policy, though this often comes with higher premiums.
  • Continuing Coverage After Employment: If your group coverage ends, you can consider purchasing Individual Life Insurance, either through a new employer or independently, to maintain continuous coverage.
  • Affordable Alternatives: You can buy Canadian Term Life Insurance plans online to secure affordable coverage. Comparing Term Life Insurance costs ensures you find the best deal.
  • Flexibility with Individual Insurance: Individual Life Insurance offers more flexibility, allowing you to tailor your coverage and keep it even if you change jobs.
  • Planning Ahead: It’s crucial to plan for what happens when your group insurance ends to ensure that your family remains protected financially.
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