A P U B L I C A T I O N O F T H E N E W J E R S E Y D I V I S I O N O F P E N S I O N S A N D B E N E F I T S
April 2009 — Page 1
Fact Sheet #13
CC-0050-0409
Fact Sheet #13
If you are covered by group life insurance while
employed, the coverage ends 31 days after you
cease employment (whether for reason of retirement,
termination of employment, or leave of absence with-
out pay).
You have the option to convert your group life insur-
ance coverage to an individual policy with the
Prudential Insurance Company when you retire, ter-
minate employment, or lose coverage while on a
leave of absence without pay. This conversion to a
Prudential policy is guaranteed (you cannot be
denied coverage for health or other reasons), but
it may be more expensive or less suitable to your
needs than other policies for which you may qual-
ify from Prudential or other insurance carriers.
You can estimate the cost of converting your policy by
using the Group Life Insurance Conversion Calculator
on the Division of Pensions and Benefits Web site at:
www.state.nj.us/treasury/pensions/conversion-calc.htm
You should contact other insurance carriers and com-
pare the available policies and costs before you
decide to purchase the conversion policy. (Other car-
riers may accept or reject your application based on
their evaluation of the status of your health and other
factors.) If you wish to purchase a conversion pol-
icy, you have a one time option to do so prior to
the 31st day after you cease employment. After
that date, you will not be eligible to purchase a
conversion policy.
You may convert your life insurance to any individual,
non-group policy customarily offered by Prudential.
However, you cannot convert to term insurance or a
policy containing disability benefits. Under a guaran-
teed conversion, you pay premiums at Prudential’s
“standard” rates for the type of policy to which you
would be converting. The individual policy will be
effective at the end of the 31 day conversion grace
period. If you do not convert to an ind