Conversion of
Group Life Insurance
Information for:
All Funds
Page 1 March 2020 Fact Sheet #13
INTRODUCTION
If you are covered by group life insurance while em-
ployed, the coverage ends 31 days after you cease
employment (whether for reason of retirement, ter-
mination of employment, or leave of absence with-
out pay). In these cases, you have the option to
convert your group life insurance coverage to an
individual policy with the Prudential Insurance Com-
pany. This conversion to a Prudential policy is guar-
anteed (you cannot be denied coverage for health
or other reasons), but it may be more expensive
or less suitable to your needs than other policies
for which you may qualify from Prudential or oth-
er insurance carriers. You can estimate the cost of
converting your policy by using the Group Life In-
surance Conversion Calculator on the New Jersey
Division of Pensions & Benefits (NJDPB) website at:
www.nj.gov/treasury/pensions
You should contact other insurance carriers and
compare the available policies and costs before you
decide to purchase the conversion policy (other car-
riers may accept or reject your application based on
their evaluation of the status of your health and other
factors).
If you wish to purchase a conversion policy, you have
a one-time option to do so prior to the 31st day after
you cease employment. After that date, you will not
be eligible to purchase a conversion policy.
Note: To protect your conversion privilege, it is sug-
gested that you send your application for conversion
to Prudential (with at least one month’s premium) at
the time you file your retirement application with the
NJDPB (but no earlier than six months prior to your
retirement date). While sending the application and
premium to Prudential will protect your conversion
privilege, under no circumstances can the conver-
sion policy become effective until 31 days after you
cease employment.
You may convert your life insurance to any individual,
non-group policy customarily offered by Prudential.
However, you cannot convert to term insurance or a
policy containing disability benefits. Under a guaran-
teed conversion, you pay premiums at Prudential’s
standard rates for the type of policy to which you
would be converting.
The conversion policy can be for any amount of insur-
ance up to the amount that you had while employed.
In the case of a retirement, the maximum amount
that you can purchase will be reduced by the amount
of any life insurance that you will automatically re-
ceive in retirement under your retirement plan. See
example in the “Retirement” section.
The individual policy becomes effective at the end
of the 31-day conversion grace period. If you do not
convert to an individual policy by the end of the 31-
day period, or if you have applied for an individual
policy and your death occurs within this 31-day peri-
od, group coverage will end and the policy will not be
eligible for conversion.
To initiate the purchase of a conversion policy, you
must contact the Prudential Insurance Company (not
the NJDPB) at 1-855-364-7783. You will need your
group insurance policy number, as follows:
• G-14800 - This is the policy number for the basic
(noncontributory) group life insurance for the fol-
lowing retirement systems:
– Alternate Benefits Program (ABP);
– Public Employees’ Retirement System (PERS);
– Teachers’ Pension and Annuity Fund (TPAF);
– Judicial Retirement System (JRS);
– State Police Retirement System (SPRS);
– Police and Firemen’s Retirement System
(PFRS); and
– Defined Contribution Retirement Program
(DCRP).
• G-13900 - This is the policy number for the con-
tributory group life insurance for PERS; or
• G-14300 - This is the policy number for the con-
tributory group life insurance for TPAF.
Fact Sheet #13 March 2020 Page 2
Conversion of Group Life Insurance
This fact sheet is a summary and not intended to provide all information.
Although every attempt at accuracy is made, it cannot be guaranteed.
The following provides detailed information about
conversion policies for the specific situations of retire-
ment (including Deferred and Disability Retirements),
termination of employment, or leave of absence.
RETIREMENT
If you retire with 10 or more years of service credit
in the retirement system, the amount of your group
life insurance will be substantially reduced when you
retire. The amount of your coverage will be listed in
the Quotation of Retirement Benefits that you will re-
ceive prior to your retirement. You will automatically
be covered by this insurance and do not need to do
anything to qualify.
If you retire with less than 10 years of service cred-
it in the retirement system, you will not receive any
group life insurance coverage (for the exception, see
the “Disability Retirement” section).
The reduction (or elimination) of your life insurance
coverage will be effective 31 days after your date of
termination. If you wish to supplement this coverage
with either a conversion policy from Prudential, an-
other type of policy from Prudential, or another insur-
ance carrier, it is best to begin exploring your options
four to six months prior to your retirement (see note
in the “Introduction” section).
Example: If you had group life insurance of $96,000
through the retirement system while employed, and
that life insurance coverage drops to $6,000 at retire-
ment, you can purchase up to $90,000 in life insur-
ance coverage under an individual, non-group policy
by contacting a Prudential agent before 31 days fol-
lowing your termination of employment.
Deferred Retirement*
Your life insurance coverage will end 31 days after
termination of employment. Any life insurance cov-
erage to which you are entitled upon retirement will
not take effect until you reach the normal retirement
age for your retirement system and begin to receive
retirement benefits (age 60 for Tier 1 or Tier 2, age 62
for Tier 3 or Tier 4, or age 65 for Tier 5 of the PERS
or TPAF; age 60 for JRS; age 55 for the PFRS or
SPRS).
You have a one-time option to purchase a conver-
sion policy prior to the 31st day after termination of
employment (not at the time that you reach normal
retirement age). The maximum amount of coverage
you may purchase will be the difference between the
amount of coverage you had while employed and the
amount of coverage you will automatically receive
when you begin to receive retirement benefits.
Disability Retirement*
If you are approved for a Disability Retirement, you
will be automatically covered by life insurance un-
til you reach age 60 for the PERS, TPAF, and JRS,
or age 55 for the PFRS and SPRS. The amount of
this coverage will be equal to the amount of the non-
contributory insurance coverage you had while em-
ployed.
You will have the option to purchase a conversion pol-
icy up until the day you reach normal retirement age
for your retirement system. The maximum amount of
coverage you may purchase will be the difference be-
tween the amount of noncontributory coverage you
had while employed and the amount of coverage you
will automatically receive when you reach age 60
(PERS, TPAF, JRS) or age 55 (PFRS, SPRS).
If you also had contributory life insurance while em-
ployed, you may convert the amount of your con-
tributory insurance until 31 days after termination of
employment. Whether or not you exercise this option,
you will still have the option to convert the noncon-
tributory portion of your life insurance up until the day
that you reach the ages stated above.
TERMINATION OF EMPLOYMENT
OR LEAVE OF ABSENCE
If you terminate employment without applying for re-
tirement or your insured period during a leave of ab-
sence expires, you will continue to be covered for the
next 31 days. Up until the end of that 31-day period,
you may convert your group life insurance, without
medical examination, to any individual policy custom-
arily offered by Prudential, except term insurance or
a policy containing disability benefits.
Example: If you had group life insurance of $96,000
through the retirement system while employed, that
life insurance coverage is eliminated when you termi-
nate employment. You can purchase up to $96,000
in life insurance coverage under an individual, non-
group policy by contacting a Prudential agent before
31 days following your termination of employment.
GROUP LIFE INSURANCE COVERAGE WHILE
RECEIVING WORKERS’ COMPENSATION
WITHOUT PAY
If you are disabled due to an illness or injury that is a
direct result of your regular job duties, you may be
out of work on an official leave of absence for illness.
If so, your Contributory and Noncontributory Group
Life Insurance will continue for the duration of the
leave of absence, up to two years.
In order for a member to continue the contributory
portion of group life insurance, the member must re-
mit premiums in advance. Premiums may either be
remitted to the NJDPB directly, or the employer may
permit the member to pay the premium through the
employer. During the interval between the time you
are without pay and the actual receipt of the Work-
ers’ Compensation award, you must be on an official
leave of absence granted by your employer.
*Does not apply to the ABP or the DCRP.
Page 3 March 2020 Fact Sheet #13
Conversion of Group Life Insurance
This fact sheet is a summary and not intended to provide all information.
Although every attempt at accuracy is made, it cannot be guaranteed.
RETURN TO PUBLIC EMPLOYMENT
If you return to public employment after purchasing a
conversion policy, you must discontinue your individ-
ual conversion policy. Otherwise, you cannot be cov-
ered again in full under a group life insurance policy.
The NJDPB cannot provide premium rates for con-
verted life insurance policies. Please contact a Pru-
dential agent for this information.
This fact sheet has been produced and distributed by:
New Jersey Division of Pensions & Benefits
P.O. Box 295, Trenton, NJ 08625-0295
(609) 292-7524
For the hearing impaired: TRS 711 (609) 292-6683
www.nj.gov/treasury/pensions
