At our core we all want to be helpful. I am working currently on a life insurance claim for a client's former employee who died over the weekend in an accident. This person had not met the waiting period at the new job, meaning that there was no coverage in force there. So the importance of portability is on my mind this morning.
These are 3 reason I think portability is a good topic to discuss with your agent:
1. Continued financial protection.
The whole purpose of insurance is to shift risk. When a former employee is not able to port policies they have to carry all the risk in the case of an accident, illness or death. As an employer making sure that portability is in place helps mitigate that risk.
2. Why the policies remain in force even when an employee loses the ability to work.
There are circumstances when an employee can no longer perform their duties and have to be let go due to an illness or injury. In these cases their policies already in force continue to be honored by the insurance carrier when portable.
3. How to continue coverage until new hire enroll at a new job.
Like the right to COBRA a medical policy is important, supplemental policies portability is important too. Portability allows former employee, in a waiting period at their new job, to continue their coverage as long as needed.
Please feel free to contact WBS if you have any questions.