When you change jobs, retire, or take a career break, your focus is usually on the next chapter — new opportunities, new goals, and perhaps a little breathing space. But there’s one thing that often slips under the radar: what happens to your risk benefits when you leave your employer?

These benefits, which include life cover, disability cover, and income protection, are designed to protect you and your family if something unexpected happens. Yet, when you leave your job, these benefits usually stop. And that can leave a significant gap in your financial safety net. Let’s unpack what this means, and how you can protect yourself during the transition.

1. Understanding your risk benefits

Most employer-sponsored retirement funds include some form of group risk cover. This might include:

• Life cover — pays a lump sum to your beneficiaries if you pass away.
• Disability cover — pays a lump sum or income if you’re permanently disabled and unable to work.
• Income protection — provides a monthly income if you’re temporarily unable to work due to illness or injury.

These benefits are negotiated at group rates, making them far more affordable than individual cover; but they’re also linked to your employment meaning the day you leave your employer, your cover typically ends.

2. What happens when you leave

Once you leave your employer, your membership in their retirement fund and associated risk benefits usually ends immediately. However, most risk policies have a continuation option. This means that in the event of you leaving the fund, (even at retirement), you may continue with the policy in a personal capacity. The insurer will provide you with a quote (individual rates will apply according to age); the benefit is that you will not be underwritten.

This is beneficial as you get older; you might develop conditions that will not allow you to obtain new life cover. If you’re moving to a new employer, your new employer may offer similar benefits but there’s often a gap period before your new cover kicks in. If you’re taking a career break or retiring, you may no longer have access to group cover at all. This is where it’s important to act quickly because if something happens during this gap, you won’t be protected.

3. Do you have a conversion option?

Some group life policies offer a conversion option that allows you to take out an individual policy without having to go through new medical underwriting. This means you can keep your cover at your own cost. The window to use this option is often limited (for example, within 30 days of leaving your employer), so it’s important to ask your HR department or fund administrator about this before your benefits lapse.

4. Review your personal financial plan

If you no longer have employer-provided cover, it’s time to reassess your personal protection needs.

Ask yourself:

• Do I need a life cover to protect my family’s income?
• Would I have sufficient savings to cover my living expenses if I couldn’t work for a while?
• How would my household manage if I became permanently disabled?

Your needs will depend on your financial goals, dependents, and savings level, but understanding the gap is the first step to closing it. It’s also a good opportunity to integrate your risk planning with your overall retirement and investment strategy — ensuring your cover support, rather than duplicates, what you already have in place.

5. Plan ahead for peace of mind

Leaving your employer can be an exciting transition, but it’s also a critical financial checkpoint. Don’t wait until your benefits have already ended to take action. Review your risk cover, understand your options, and make any necessary arrangements while you’re still employed.

Next steps Your risk benefits form an essential part of your financial safety net, but they don’t automatically follow you when you change jobs or retire. By reviewing your cover early, understanding your conversion options, and aligning your protection with your long-term goals, you can ensure you and your loved ones remain financially secure no matter where your career takes you next.

At 10X Investments, we believe that understanding your benefits is the first step toward taking control of your financial future.