Changing jobs can raise numerous financial questions. One question that many people overlook is “what happens to my life insurance if I get a new job?” The answer depends on the type of life cover you have and who arranged it.
In this article, we break down what happens to your life insurance when you start a new job and what to consider when reviewing your protection needs.
Does life insurance transfer with you?
It depends on who owns the policy:
1. Personal life insurance
If you arrange your life insurance policy, it is yours to keep, regardless of where you work. You can:
- Continue paying the premiums
- Update your contact or payment details if needed
- Review the cover amount if your financial situation changes
Personal policies are portable and unaffected by job changes, which is why many people prefer to arrange their cover independently.
2. Employer life insurance (group life or death in service)
If your employer provides your life cover, it usually ends when you leave that job. This includes:
- Group Life Insurance
- Death in Service Benefit
- Company-paid life insurance policies
In most cases, the policy is tied to your employment contract and is not transferable.
What happens to your cover when you leave?
If your employer provided life insurance, here’s what usually happens:
- Your cover ends on your last working day or shortly after your final payday
- You may be offered the option to convert the cover into a personal policy, but this is often more expensive
- You’ll lose the benefit unless you arrange new cover privately or through a new employer
It’s essential to consult with HR or your benefits team before leaving a role to ensure you understand when cover ends.
Will your new employer offer life insurance?
Some employers offer a new life insurance policy, often as part of their benefits package. This is commonly known as:
- Death in Service Benefit
- Group Life Assurance
You may be automatically enrolled or have to opt in. It is worth asking:
- How much cover is included? (e.g. 2x, 3x, or 4x your salary)
- Who is covered? (e.g. full-time only, or after probation)
- Is a medical required?
- Is the benefit written in trust?
If your new employer does not offer life insurance, arrange your cover to ensure your family is protected.
Should you review your life insurance when you change jobs?
Yes. A new job often means changes to your income, responsibilities, or long-term plans – all of which affect how much cover you might need.
You should review:
- Your existing personal cover, if any
- Your financial dependents and whether they’ve changed
- Any debts or new financial obligations
- Whether your new employer offers life cover, and if it’s enough
- Whether you need additional income protection or critical illness cover
Speaking with a protection adviser can help ensure your life insurance still meets your needs in your new role.
FAQs
Does death in service continue after you leave a job?
No. Employer-provided life insurance typically ends when you leave the company.
Can I convert my group life insurance into a personal policy?
Some insurers offer a conversion option, but it may come with higher costs or limited terms and conditions. Ask your HR department if this is available.
Do I need life insurance if my new employer provides it?
Employer cover is helpful, but it may not be enough. It also ends if you leave the job, so many people choose to supplement it with their policy.
Will changing jobs affect my life insurance premiums?
Only if you are applying for a new policy will your existing personal policy not change unless you make adjustments.
Should I get life insurance before I leave my job?
It is often a good idea if you are relying on employer cover and want to avoid any gaps in protection.
Conclusion
If you’re changing jobs, your life insurance situation may also change. Personal policies stay with you, but employer-provided cover usually ends. Reviewing your life insurance when you move roles is a smart way to keep your financial protection up to date.
Need help figuring out what cover you still need? A protection adviser can guide you through your options and help you make a smooth transition.
