Estate planning at Aetna

When you leave employment, you have two options to continue coverage. The Portability option allows you to port 50%, 75%, or 100% of your group life coverage (up to $250,000) at group term rates. The Conversion option allows you to convert your group term life to an individual whole life policy without a medical examination. Both options require application and first premium payment within 31 days of coverage termination. Ported coverage reduces by 75% at age 65 and terminates at age 75. Contact your employer HR department or Aetna at 1-800-872-3862 for conversion and portability details.

Basic life insurance is employer-paid and typically provides coverage equal to 1x to 2x your annual salary (or a flat dollar amount). Supplemental (voluntary) life insurance is employee-paid and allows you to purchase additional coverage beyond the basic amount for yourself, your spouse, and your dependent children. Both are group term life policies. The employer determines the specific plan design, coverage amounts, and guaranteed issue limits. Both basic and supplemental life coverage allow you to name a trust as beneficiary.

Portability allows you to continue group term life coverage at group rates after leaving employment. You can port 50%, 75%, or 100% of coverage up to $250,000, but ported coverage reduces by 75% at age 65 and terminates at age 75. Conversion allows you to convert group term life to an individual whole life policy without a medical examination. The converted policy has level premiums and builds cash value, and it does not terminate at a set age. Both options require application and first premium payment within 31 days of coverage termination. A converted individual policy can be assigned to an ILIT for estate tax planning, while a ported group policy cannot.