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If you’re receiving long-term disability (LTD) benefits through a group insurance policy, you may be wondering what happens if your employment ends or your group coverage is terminated. One potential option is a “conversion privilege.”
How Conversion Works
A conversion privilege allows you to convert your group LTD coverage into an individual policy under certain conditions. This option can be especially important if you’re still disabled but no longer employed. However, not all group LTD policies offer this feature. Those that do often come with specific eligibility requirements and strict time limits.
ERISA and Conversion Rights
Under ERISA-regulated plans, conversion rights are determined by the terms of the insurance policy itself. These plans are not required by federal law to offer a conversion option. If your policy does include this privilege, you’ll likely need to apply for the individual policy within a short window after your group coverage ends. Premiums for the converted policy are usually higher, and the benefits may be more limited than what you received under the group plan.
Know Your Policy
It’s important to carefully review your policy or contact the insurer directly to understand your options. If your LTD claim has been denied or terminated and you believe you’re still entitled to benefits, you don’t have to navigate the appeals process alone. We help individuals nationwide fight for the long-term disability benefits they deserve.
Contact us if you have questions about a denied LTD claim or your rights under a group disability policy.
Frequently Asked Questions
Do all group LTD policies include a conversion privilege?
No. Conversion privileges are not required under ERISA and are only available if specified in your insurance policy.
Is there a deadline to apply for a converted policy?
Yes. Most policies require you to apply within a short period—often 31 days—after your group coverage ends.
Will the benefits be the same in the individual policy?
Probably not. Converted policies often have higher premiums and reduced benefits compared to the original group coverage.
Can I continue receiving LTD benefits if I convert my policy?
A conversion typically provides future protection—it doesn’t continue the current benefits. If you’re already on claim, the conversion may not be necessary unless your current benefits are being terminated.
What should I do if my LTD benefits are denied or stopped?
You have the right to appeal. The Ortiz Law Firm can help guide you through the appeals process and fight for the benefits you’re entitled to. Call (888) 321-8131 to schedule your free case evaluation today.
