Help with group insurance when an employee leaves your organization

How to remove an employee from your policy and provide information for continuing coverage

When an employee leaves your organization, you or your financial representative needs to notify Principal of the termination and the reason for it.

Online: Log in to your account. Then go to the Member Information section to terminate the employee.

Email: GroupBenefitsAdmin@principal.com

Usually, when employees leave an organization, their benefits stop. But with group insurance from Principal®, your former employees may be able to continue their coverage. Continuation options may be available for group life, critical illness1, accident, long-term disability, dental, and/or vision insurance.

Employees have a limited amount of time to enroll in coverage. That’s why it’s important you let eligible employees know about options for enrolling in insurance as soon as their group coverage ends.

Check your policy to see if former employees can continue their insurance.

  • Portability: Extend current coverage to another policy, without answering medical questions.
  • Conversion: Change current coverage to an individual2 policy, without answering medical questions. 
  • Consolidated Omnibus Budget Reconciliation Act (COBRA): Continue current group coverage.

Life insurance

  • Continuation type: Conversion
  • Timing: the employee has 31 days to enroll in coverage after group insurance ends
  • Who's eligible: Employee, spouse, and children
    • Spouse and children can convert coverage, even if the employee doesn't

Life insurance

  • Continuation type: Portability3
  • Timing: the employee has 60 days (31 days in New York) to enroll in coverage after group insurance ends
  • Who's eligible: Employee, spouse, and children
    • Spouse and children can port coverage, only if the employee does

Critial illness and accident insurance

  • Continuation type: Portability3
  • Timing: the employee has 60 days to enroll in coverage after group insurance ends
  • Who's eligible: Employee, spouse, and children
    • Spouse and children can port coverage, only if the employee does

Long-term disability insurance

  • Continuation type: Conversion3
  • Timing: the employee has 31 days (45 days in New York) to enroll in coverage after group insurance ends
  • Who's eligible: Employee

Dental and vision insurance

  • Continuation type: COBRA
  • Timing: the employee has 31 days to enroll in coverage after group insurance ends
  • Who's eligible: Employee, spouse, and children

Employers should provide eligible employees with the documents needed to continue their benefits as soon as possible after their group coverage ends. It’s also important employees understand the exact date their coverage ends so they can plan accordingly. Get employee portability and conversion documents.

Are you an employee?

Don't see the topic you need help with?

Give us a call.

  • Businesses with retirement plans: 877-475-3436
  • Businesses with group insurance products: 800-843-1371

Or send us an email

1 Specified disease in New York.

2 Group policy for long-term disability insurance. 

3 Available only if employer elected option.

This is an overview of the benefits insurance provides, but there are limitations and exclusions. CRITICAL ILLNESS AND ACCIDENT INSURANCE PROVIDE LIMITED BENEFITS. For cost and coverage details, contact your Principal representative. Insurance issued by Principal Life Insurance Company, Des Moines, IA 50392.