10 points to review in your group insurance plan before retirement

1. What you have now

Take stock of the coverage included in your group insurance plan. This will help you understand which coverages will end at retirement, which can be continued and which may need to be replaced.

Pay particular attention to benefits that often become more important with age, such as:

• Prescription drug insurance
• Health care
• Life insurance

As the years go by, your health status and the cost of obtaining new insurance can change. Some types of coverage can also be more difficult to obtain. That’s why it’s important to know exactly what you currently have before making any decisions.

Review your insurance booklet and go through the coverages available to you.

2. What you’ll need at retirement

Your situation will be different in retirement. Take the time to assess your needs based on your new lifestyle.

Your current plan may provide coverage for your spouse or children. This coverage could change at retirement or no longer be offered in the same way.

Think ahead to your retirement years:

• Will you still have a mortgage or other debts to pay?
• Will you have children or loved ones who depend on you financially?
• What will your projects and priorities be?
• What healthcare needs might you have in the years ahead?
• Who needs coverage during retirement?

It’s impossible to predict the future. However, some decisions are easier to make before retirement, while you still have access to your group benefits.

Anticipate potential changes and choose the coverages you’ll need in retirement.

3. Whether your coverage ends or continues

Retirement often leads to changes to your group insurance plan. Some of your coverage may end as soon as you retire, while others may continue for a certain period.

Check your policy for:

• Your retirement date and the events that may end or modify your coverage
• The maximum age allowed for certain benefits
• Your options at retirement

This information will help you plan ahead and avoid any gaps in coverage.

4. Options available after retirement

The first step is to find out whether your group insurance plan continues after retirement.

Not the case for you? Your insurer may offer the option of converting your group coverage into individual insurance. In the industry this is known as conversion. And the best part is that no medical examination is required.

If your insurer doesn’t offer a conversion option, you may need to apply for individual insurance. Keep in mind that this option is often more expensive and generally requires completing a health questionnaire.

Not interested in individual insurance? Your remaining options may be to enrol in your province’s public drug insurance plan and to review any travel-related coverage offered through your credit card.

5. Converting your group insurance into individual coverage

Some group insurance coverages can be converted into individual insurance coverage.

In many cases, this option is available without a medical questionnaire.

At Beneva, the conversion products are called Privilege and Perspective.

Check with your employer, your human resources team, or your plan administrator to find out:

• Which coverages could continue after retirement
• Conversion options
• The next steps
• The deadlines to be met

This information will help you understand your options before you retire.

6. When to take action

The deadlines to convert your group coverage to individual insurance are often limited. Depending on your plan, you may have up to 90 days from the start of retirement to convert health insurance and 31 days to convert life insurance.

Other conditions may also apply, including maximum age limits for certain coverages.

If your insurer offers a conversion option, contact them before you retire for all the details.

We can help you assess your needs and make informed decisions.

7. Your partner's group insurance

Does your spouse have access to a group insurance plan through their employer? Depending on the rules of that plan, you may be eligible for some of its coverages after you retire.

Check this possibility before retirement to understand what options may be available to you.

8. The provincial prescription drug insurance plan

In retirement, your provincial public prescription drug plan could become your only option if:

• Your group insurance plan ends and no continuation or conversion option is available
• You’re not eligible to join your spouse’s group insurance plan
• You don’t obtain individual insurance coverage

A public plan provides essential protection, but it may not cover all healthcare expenses, particularly services provided by healthcare professionals. Depending on your needs, some medications, treatments or services may still be paid out of pocket.

9. Cost

In retirement, you will generally have to pay the full cost of your premiums. Your employer, union or association will no longer contribute to the cost of your insurance.

Premiums depend on several factors, including your age, the coverages selected and the type of insurance purchased.

Get a quote. Depending on your situation, individual insurance requiring a medical questionnaire may be more advantageous than some conversion products.

To get an idea of the cost, try our calculator for our Privilege product.

One thing is certain: this new expense should be factored into your retirement budget.

10. Taking action

Once you’ve made your decision, gather the information you’ll need before starting the process.

Before contacting your insurer, make sure you have:

• Your questions
• Your notes
• Information about your group insurance plan
• Any documents that could be useful

Being prepared will save you time and help you move forward with confidence.