Benefits You Can Keep If You Leave Your Employer
Transitioning between jobs can be stressful, especially when it comes to managing your benefits. Some plans are tied to your current employer – like major medical insurance, or dental and vision insurance – but others can move with you.
If you are changing jobs or retiring, it’s important to know which benefits you can keep and which you’d lose.
Benefits You Can Keep:
Life Insurance
Your life insurance is an individual policy and can be taken with you if you leave employment.
Health Savings Accounts (HSAs)
Because HSAs are individually owned and do not expire, employees can take their account with them if they leave employment. You will be able to contribute and withdraw your HSA savings wherever you go.
Limited Benefit Accident Insurance
The individual accident base policies are guaranteed renewable for life. If you keep paying required premiums, coverage will continue. The company has the right to increase the premium if the policy allows it.
Limited Benefit Critical Illness Insurance
If you were continuously covered for 12 consecutive months prior to the date your coverage under the policy ends, you can submit a request to American Fidelity within 30 days of losing eligibility, for continuation of coverage.
Disability Insurance
If disability benefit payments are made by an insurance company, benefits will not cease.
If disability payments are made by an employer, benefit payments may cease upon the loss of employment.
Limited Benefit Cancer Insurance
Individual cancer base policies are guaranteed renewable for life. If you keep paying required premiums, coverage will continue. The company has the right to increase the premium if the policy allows it.
Benefits That Aren’t Portable:
Retirement Plans
A new job means a new retirement plan, but you can roll over your 401(k) into an individual retirement account (IRA) at an investment firm or at your bank.
Flexible Spending Accounts
These funds are subject to “use or lose” rules, meaning you must generally use the funds by the end of the plan year, unless given a carryover provision, or forfeit the remaining amount.
When your employment ends, access to your funds for expenses after you leave your employer also ends, unless you’re eligible to continue coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA)
For more information, check out our article: What to Do with Your HCFSA When Your Job Changes.
Major Medical, Dental, and Vision Insurance
Through COBRA, you may be able to keep your major medical, dental, and/or vision benefits for a limited time.
If you did not enroll in any of these plans during your employment, you will not be able to get them through COBRA after leaving your employer.
For more information, check out our support page about keeping your coverage.
This blog is up to date as of January 2021 and has not been updated for changes in the law, administration or current events.
