An employee leaves their job where they had $200,000 of group life insurance. What right do they typically have regarding this coverage?

Question: An employee leaves their job where they had $200,000 of group life insurance. What right do they typically have regarding this coverage?

Answer options:

• They can continue the coverage by paying the group rate directly to the insurer. ✅ They can convert a portion of the group coverage to an individual permanent policy without medical evidence.
• They can take the cash value of the group policy.
• The coverage is automatically extended for one year free of charge.

Correct answer: They can convert a portion of the group coverage to an individual permanent policy without medical evidence.

Explanation: Most group life plans include a conversion privilege, allowing a departing employee to convert their coverage to an individual permanent life policy within a specific timeframe (usually 31 days) without providing evidence of insurability.