Can we port group term life insurance?

Porting group term life insurance for employees refers to the process of transferring an employee's group life insurance policy to an individual policy or transferring the policy to another insurer when they leave the organization or become ineligible for coverage under the group policy. Portability in insurance generally means moving from one insurer to another carrying some benefits from the policy of the previous insurer.

It is important to remember that IRDAI allows portability only for health insurance policies and not life insurance policies. Hence, it is not possible to post group term insurance.

Group term life insurance is bought by the company for their employees. The policy’s tenure is one year. All the employees in the company in that one-year tenure are covered by this policy. When an employee leaves the organization, then policy benefits also terminate. There is no way the employee can convert it into an individual term life policy like it is possible in group health insurance.

However, it's essential to note that the premium for individual term life insurance policies is typically higher than group term life insurance premiums. This is because group policies are typically offered at a lower rate due to the larger number of participants.

Overall, porting group term life insurance can be a valuable option for employees who want to continue their life insurance coverage after leaving a job or becoming ineligible for group coverage.