Abstract: A method of providing portability and conversion life insurance plans to departing employees is disclosed. The method comprises the steps of establishing risk parameters for pricing an insurance policy, collecting data regarding a departing employee's individual risk level upon termination of employment, assigning the departing employee a rating based on risk level, and offering a rate based on the departing employee's rating, where low-risk individuals pay a lower premium than do higher-risk individuals. The method results in the retention within the plan of low-risk individuals who might otherwise opt for another policy with a more competitive rate. Implementation of the method thereby creates a more favorable risk pool of insured individuals and represents a tremendous increase in efficiency compared to the way portability and conversion insurance programs are conventionally managed.