In a typical group life insurance plan, the 'Conversion Privilege' allows a departing employee to:

Question: In a typical group life insurance plan, the 'Conversion Privilege' allows a departing employee to:

Answer options:

• Change their group life choice to group health coverage.
• Upgrade their group term coverage to more group term coverage. ✅ Convert their group life coverage to an individual permanent policy without medical evidence.
• Receive a refund of all premiums paid by the employer.

Correct answer: Convert their group life coverage to an individual permanent policy without medical evidence.

Explanation: The conversion privilege allows an employee leaving a group plan (due to termination of employment) to convert their group life coverage to an individual permanent policy without providing evidence of insurability, provided they apply within 31 days.