Final answer:
To keep life insurance benefits after leaving a job, an employee can use portability to continue their group life insurance or convert it into an individual policy without proving insurability. The Affordable Care Act helps by preventing insurance denial due to preexisting conditions and expanding Medicaid.
Step-by-step explanation:
To maintain the benefits of a group life insurance policy after leaving a job, an employee can utilize a feature commonly known as portability. This option allows the individual to continue their life insurance coverage without having to prove insurability, meaning there's no need for medical examinations or health questionnaires. Portability is not a guarantee in every policy, and when available, it usually must be elected within a certain time frame after leaving the employment.
Another option is conversion, which permits the employee to convert their group policy into an individual policy, again without providing evidence of insurability. Policyholders should note that converting to an individual policy may result in higher premiums since group policies often benefit from lower rates due to the pooled risk among employees.
Under the Patient Protection and Affordable Care Act, commonly known as the Affordable Care Act (ACA) or Obamacare, the insurance market in the U.S. aims to mitigate the issue of adverse selection by prohibiting insurance companies from denying coverage based on preexisting conditions.