What is Continuation Option in Insurance and how to convert your policy?
- By Willi Olsen
- Updated
The continuation option lets you carry on your insurance cover if you leave your job or retire, based on the same automatic acceptance terms you had through your workplace scheme. That means any health issues you developed before or during your time with your employer can still be covered.
You don’t need to fill out any health forms, go to the doctor, or prove anything medically — no exams, no specialist reports, no questions asked.
Whatever the reason you’re leaving your job, it’s worth knowing you can still stay protected.
With the continuation option, you can take out a personal policy directly with the same insurer your employer used, for up to the same amount of cover you had through work.
But here’s the catch: you usually only have 30 to 60 days from your last day of work to apply. After that, the door closes. It’s just one simple form to take over the policy in your own name — and we can help you sort it, fast.
Need help? Book a quick call now. We’ll walk you through your options and make sure your cover continues without any gaps.
- You can take over your employer-provided insurance plan when you leave the employer.
- Usually only available for 30 and 60 days after your last day of employment
- One application form to convert your cover
- No health questions asked
What is the Continuation Option?
Continue your group insurance after leaving your job without medical exams or health questions. Keep your cover under the same terms you had while employed.
Here’s the key advantage:
You can continue your cover without answering health questions or undergoing new medical underwriting — even if your health has changed.
To use this option, you must:
Have ceased employment with the employer who provided the group cover, and
Exercise the option within 60 days of leaving that job.
In other words, this option gives you seamless protection and peace of mind, ensuring you won’t lose your insurance just because you’ve left a job — and the insurer accepts the continuation without reassessing your health.
Health Insurance Continuation Option
Have you resigned or left your employer and wanting to keep the health insurance? You might be eligible to take over the health insurance previously pay for by the employer.
To see if you are eligible to take over the policy privately, start by completing the form here.
Benefits of Continuation Option
One of the biggest perks of group insurance is the option to continue your coverage privately. When staff members resign from an employer providing insurance coverage, they can take their coverage with them.
Eligible members can:
- Maintain their valuable life, trauma, TPD, income protection and/or health cover wherever their career takes them (particularly important for members with health concerns or those otherwise unable to obtain coverage due to deteriorating health).
- Continued coverage at no extra cost for up to 60 days after leaving their employer’s group insurance plan allows them to consider their options.
- No evidence of health needs to be submitted, meaning no medical tests or health questionnaires to complete.
How long do I have?
You usually only have 30 to 60 days from your last day of work to apply. After that, the door closes.
To start the process of converting your workplace insurance into a personal policy, just fill out the form linked below — it’s quick and straightforward.
If you developed any medical conditions while you were covered under your employer’s group plan, don’t worry — those conditions will still be covered when you use the continuation option.
When you carry on your cover privately, you get:
- No health questions or medical exams
- Level premiums — your rate stays the same and won’t go up as you get older
- The same amount of cover you had under your workplace plan
- Available with all group insurance providers (as long as you apply in time)
Just keep in mind: you only have a limited time to apply after leaving your job. Check the table below to see how many days you have based on your insurer.
| Insurer | Days to Apply |
|---|---|
| AIA | 60 Days |
| Accuro | 60 Days |
| Asteron Life | 60 Days |
| Fidelity Life | 60 Days |
| Southern Cross | 30 Days |
| NIB | 60 Days |
How much will my continuation option cost me?
When activating your continuation option, the insurer uses the usual factors to determine your premiums, which are:
- Gender,
- Age,
- Type and level of cover
- Smoking or vaping preferences
We will provide you with a quote that details your insurance benefits and premiums.
Let’s make sure you don’t lose your cover just because you’ve left your job.
Let’s make sure you don’t lose your cover just because you’ve left your job.
If your insurance was through your employer, you may be able to keep it – no health questions, no medical exams, and no hassle. But here’s the thing: you’ve only got a short window to apply.
Fill out the quick form below, and I’ll send you a personalised quote based on your current cover. It’s free, and it only takes a minute.
Once we have your details, I’ll contact you to help you lock in the right policy for your new situation before time runs out.
Continuation Option FAQ's
What cover is available?
You can apply to continue the same level of cover you have for Life, Total Permanent Disability, Trauma or Income Protection with the employer you are leaving. Any additional or new cover is also available but will be subject to full underwriting.
Who pays the premium?
You are responsible for paying the premium for any cover you continue through the continuation option.
When can I use the continuation option?
Employees are eligible for the continuation option (regardless of their health status) if they apply within the stated time frame (listed in the certificate of insurance or policy), usually within 45 or 60 days after leaving employment.
Other conditions must also be met (as specified in the workplace insurance policy), including that no benefit has been paid or could be claimed for you under the policy, and that you are not living outside New Zealand after your plan membership has terminated.
Specific to income protection insurance, provided that you have not attained age 65, the policy can continue.
Similarly, life insurance can continue, provided you have not attained age 70.
Can I continue my health insurance after leaving a job?
Suppose you are leaving an employer health insurance group plan. In that case, you can qualify for a private health insurance plan with the same insurer and have pre-existing medical conditions covered.
To learn more about your options, complete the form here, and we will get in touch with you within 24 hours.