Health insurance glossary
Conversion option
Plain-English definition
A conversion option lets you move from a group health or dental plan, such as one through work, to an individual policy when the group coverage ends, often without new medical questions. Whether a plan offers one, what the individual policy covers and how long you have to apply are set by the plan, so ask before your group coverage ends.
By the HealthRate editorial desk
How it works
Conversion commonly has a deadline counted from the day group coverage ends. If you miss it, you may need to apply for individual coverage that asks medical questions.
The individual policy you convert to can be more limited than the group plan and is priced as an individual policy. Compare it with other individual plans before deciding.
Ask the plan administrator, in writing, for the conversion terms and the deadline before your last day of coverage.
Why it matters
Leaving a job, retiring or ageing out of a family plan can end coverage on a set date. A conversion option can keep you insured while you decide what comes next, particularly if a health condition would make a new application harder.
Not to be confused with
Not the same as continuing the group plan. Conversion replaces group coverage with an individual policy; continuation keeps the group coverage for a period, where a plan allows it.