Group Conversion allows an insured to convert group coverage such as term to a policy of a different type (such as a cash value policy). Which statement is true?

Group Conversion allows an insured to convert group coverage such as term to a policy of a different type (such as a cash value policy). Which statement is true?

• A. Group Conversion allows converting group coverage to a different type of policy
• B. Group Conversion is only allowed for term policies
• C. Group Conversion requires medical underwriting for the new policy
• D. Group Conversion cannot be used to obtain cash value policies

Answer: (A)

Group conversion lets the insured switch from group coverage to an individual policy with a different design, typically a permanent policy that has cash value, and it usually happens without needing new medical evidence during the conversion period. This preserves coverage when the group plan ends or you leave the employer, and you can choose a policy type that builds cash value, not just another term policy. That’s why this statement is true: converting to a different policy type is exactly what group conversion enables. The other ideas—being limited to term policies, requiring medical underwriting for the new policy, or ruling out cash value policies—don’t fit the concept, since the whole point of group conversion is to allow a smooth transition to a permanent policy with potential cash value.

Group conversion lets the insured switch from group coverage to an individual policy with a different design, typically a permanent policy that has cash value, and it usually happens without needing new medical evidence during the conversion period. This preserves coverage when the group plan ends or you leave the employer, and you can choose a policy type that builds cash value, not just another term policy. That’s why this statement is true: converting to a different policy type is exactly what group conversion enables. The other ideas—being limited to term policies, requiring medical underwriting for the new policy, or ruling out cash value policies—don’t fit the concept, since the whole point of group conversion is to allow a smooth transition to a permanent policy with potential cash value.