“Life Insurance” for residents of Quebec, shall mean the Amount of Life Insurance in force for each Covered Person insured for the following benefits: Basic Life Insurance, Optional Life Insurance and Dependent Life.
“Life Insurance” for residents of all other Provinces, shall mean the Amount of Life Insurance in force for each Covered Person under this Policy insured for the following benefits: Basic Life Insurance and Optional Life Insurance.
Where the Covered Person’s Life Insurance terminates before age 65, the Covered Person may obtain an individual policy with Co-operaotrs Life without providing evidence of good health. At age 65, the Covered Person shall, subject to the conditions of this provision, be entitled to convert the Optional Life Insurance, regardless of whether the Basic Life and Excess Life Insurance is also converted.
The individual Life Insurance Policy is available in the following forms:
- a Permanent Traditional Plan,
- a Term to age 65 Plan, or
- a One Year non-renewable Term Plan.
Where the Covered Person’s Life Insurance under this Policy terminates on their 65th birthday, the Covered Person may convert to a Permanent Traditional Plan allowed by the Group Insurance department of Co-operators Life, provided the Covered Person applies for the conversion within 31 days of their 65th birthday. The conversion privilege is not available after the Covered Person 65th birthday.
The individual policy will be issued at the rates in effect on the date of conversion based on the class of risk applicable to the Covered Person and the new policy (determined by Co-operators Life’s rules at the time of conversion) and the then attained age (nearest birthday) of the Covered Person.
For residents of Quebec for Dependent LIfe conversion
The minimum Amount of Insurance to be converted for an Employee is $10,000 and the minimum Amount of Insurance to be converted for an eligible Dependent is $5,000. The minimum Amount of Insurance allowed to be converted to a Permanent Traditional Plan is $5,000, and the minimum Amount of Insurance allowed to be converted to a term to age 65 plan or a One Year ono-renewable Term Plan is $10,000.
The Individual Life Policy will not include an Total Disability Benefits, Critical Illness/Disease or any Accidental Death Benefits.
Amount of Insurance
Where the Covered Person’s Insurance terminates and this Policy and the Employer’s coverage under this Policy remains in force, the Amount of Insurance which the Covered Person may convert shall be limited to the lesser of:
- $400,000 for residents of Quebec or $200,000 for residents of all other Privinces, or
- the full amount of Life Insurance at the time of termination less the full amount of Insurance for which the Covered Person is eligible under a new group policy within 31 Days after termination of the Employee’s insurance under this Policy.
The premium for the Individual Life Insurance Policy will be based on the Covered PErson’s age (nearest birthday), sex, class of risk and on the type and amount of policy being issued at the time of conversion.
Termination of the Policy or the Employer’s Coverage under this Policy
If a Covered Person’s Insurance terminates due to termination of this Policy or the Employer’s coverage under this Polciy, the following shall apply:
- the Amount of Insurance that may be converted shall not exceed three times the year’s Maximum Pensionable Earning as established under the Canada Pension Plan, and
- the conversion right shall be limited to persons who have been insured under the Employer’s group life benefit plan for at least five continuous years, and
- the conversion privilege shall apply only if the insurance is not being replaced within 31 Days by another contract of group insurance or if the insurance is being replaced by an amount that is less than the amount for which the Covered Person is eligible under 1 above.
The Individual Life Policy will be issued only a written application (including the first premium) is completed and received by Co-operators Life at its Regina Office within 31 Days from the date the insurance under this Policy terminates.
The Individual Lfe Policy shall become effective on the day following the expiration of the 31 day period.
Death during the Conversion Period
Where a Covered Person has not converted insurance under this Policy and where a Covered Person dies withing the 31 Days allowed for conversion, the total amount of Life Insurance is eligible for conversion, is payable under this Policy.
Subsequent Eligibility under this Policy
If a Covered Person obtains an Individual Policy through this Provision and later becomes eligible for insurance under this Policy, the amount for which the person is eligible will be reduced by the amount of insurance remaining in force under the Individual Policy
No Obligation to Advise
Co-operators Life shall be under no obligation to advise eligible Covered Persons of their right to convert.