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When an employee leaves your organization, you or your financial representative needs to notify Principal^® of the termination and the reason for it.

. Then go to the Member Information section to terminate the employee.

Usually, when employees leave an organization, their benefits stop. But with group insurance from Principal, your former employees may be able to continue their coverage. Continuation options may be available for group life, critical illness¹, accident, hospital indemnity, long-term disability, dental, and/or vision insurance.

Employees have a limited amount of time to enroll in coverage. That’s why it’s important you let eligible employees know about options for enrolling in insurance as soon as their group coverage ends.

Check your policy to see if former employees can continue their insurance.

• Portability: Extend current coverage to another policy, without answering medical questions.
• Conversion: Change current coverage to an individual policy, without answering medical questions.
• Consolidated Omnibus Budget Reconciliation Act (COBRA): Continue current group coverage.

Life insurance

• Continuation type: Conversion
• Timing: the employee has 31 days to enroll in coverage after group insurance ends
• Who's eligible: Employee, spouse, and children
  • Spouse and children can convert coverage, even if the employee doesn't

Life insurance

• Continuation type: Portability²
• Timing: the employee has 60 days (31 days in New York) to enroll in coverage after group insurance ends
• Who's eligible: Employee, spouse, and children
  • Spouse and children can port coverage, only if the employee does

Critical illness, accident, and hospital indemnity insurance

• Continuation type: Portability²
• Timing: the employee has 60 days to enroll in coverage after group insurance ends
• Who's eligible: Employee, spouse, and children
  • Spouse and children can port coverage, only if the employee does

Long-term disability insurance

• Continuation type: Conversion²
• Timing: the employee has 31 days to enroll in coverage after group insurance ends
• Who's eligible: Employee

Dental and vision insurance

• Continuation type: COBRA
• Timing: the employee has 60 days to enroll in coverage after group insurance ends
• Who's eligible: Employee, spouse, and children

Employers should provide eligible employees with the documents needed to continue their benefits as soon as possible after their group coverage ends. It’s also important employees understand the exact date their coverage ends so they can plan accordingly. Get employee portability and conversion documents.

Get employee portability and conversion documents.