Where the Basic Life Insurance (plus Optional Life Insurance where applicable) of an Employee and/or Spouse, who is not yet 65 years of age terminates, that Employee and/or Spouse, subject to the conditions of this provision, shall be entitled to have issued any individual policy on a Permanent Traditional Plan, a Term to age 65 Plan, or a One Year non-renewable Term Plan then issued by Co-operators Life (such policy hereafter the “Conversion Policy”) without providing evidence of insurability.
At age 65, the Employee and/or Spouse 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 Conversion Policy will not include an Total Disability benefits.
Where the Employee’s (or Spouse’s) insurance terminates and the Policy remains in force, the amount of insurance which the Employee and/or Spouse may convert shall be limited to the lesser of:
- $200,000 or
- the full amount of insurance at the time of termination less the full amount of insurance for which the Employee (1) and/or Spouse is eligible under a new group contract when exercising the right to convert.
Where the Employee’s (or Spouse’s) insurance terminates due to termination of the Policy, 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, or
- the conversion right shall be limited to persons who have been insured Employees (or Spouse’s) under the Employer’s group life benefit plan for at least five continuous years, or
- the conversion right shall apply only if the insurance is not being replaced by another contract of group insurance, or
- the insurance is being replaced, but is being replaced by an amount that is less than the amount for which the Employee and/or Spouse is entitled under 1 above. The amount of the Conversion Policy shall be limited to the lesser of 1 above, or the full amount of insurance at the time of termination less the full amount of insurance for whcih the Employee and/or Spouse is eligible under a new group contract when exercising the right to convert.
The Conversion Policy will be issued only if Co-operators Life receives a written application and the first premium at its Regina Office within 31 days after the date of cancellation of the Employee’s and/or Spouse’s insurance under this Policy. The Conversion Policy shall become effective on the day follwoing the expiration of the 31 day period.
The premium for any Conversion Policy shall be based on Co-opators Life’s rates applicable to the plan and amount of the Conversion Policy and the attained age of the Emplo9yee and/or Spouse at the dat on which the Conversion Policy becomes effective.
Where an Employee (or Spouse) has not converted insurance under this Policy and where an Employee (or Spouse) dies withing the 31 Days allowed for conversion, the total amount of terminated Basic Life Insurance (and Optional Lfie Insurance if applicable) eligible for conversion, is payable under this Policy.
Co-operators Life shall be under no obligation to advise eligible Employees (or Spouse’s) of their right to convert as stated in this provision.