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Understanding the Impacts of Your Insurance Coverage’s Blackout Period

Understanding the Impacts of Your Insurance Coverage’s Blackout Period

If you currently hold insurance coverage, your insurer may have notified you about a potential upcoming blackout period. If you’ve never experienced a blackout period insurance before, you may have some questions about what this period could mean for your coverage and your access to the policy you’ve chosen. Fortunately, the answers may be more straightforward than you realize. Here are the main impacts you need to understand.

You Cannot Change Your Policy Specifics During Blackout Periods

The main impact of blackout periods is that you will not be able to make changes to any specifics of your policy for the duration of the blackout. This includes:

  • Policy upgrades or downgrades
  • Policy cancellations
  • Changes to the areas insured
  • Administrative changes to insurance documents
  • Withdrawals from relevant accounts, such as retirement or investment accounts, in some cases

Contact Your Insurer for More Information About the Purpose of the Blackout Period

The exact reason for the blackout may vary, so consider reaching out to your insurer for specific information. Common purposes include:

  • A transfer of assets
  • Technological difficulties
  • Company mergers, acquisitions, or general restructurings
  • Alterations to current benefits plans

If you’ve never dealt with a blackout period insurance before and you’re wondering what to expect, there are a few potential impacts to keep in mind. In general, blackout periods block insurance holders from changing the specifics of their policy during the period. You may want to reach out to your insurer for additional details.