What is the Conversion Privilege in group life insurance?

What is the Conversion Privilege in group life insurance?

• A. Allows converting from an individual policy to a group policy.
• B. Allows an employee to convert from a group policy to an individual policy, without a physical exam.
• C. Allows converting from a group policy to an individual policy, without a medical exam.
• D. Requires a new medical exam to convert.

Answer: (D)

The Conversion Privilege lets you move from a group life policy to an individual life policy without having to prove you’re still insurable. When you leave the group or your coverage ends, you can convert to an individual policy and keep life insurance in force, typically paying premiums based on your current age. The key point exam-wise is that no medical exam is usually required to do this conversion, sometimes with the only restriction being a time limit to exercise the option and a cap on how much new coverage you can obtain. So the best description is the option that says you can convert without a medical exam. Requiring a new medical exam would defeat the purpose of the privilege, and the other options don’t accurately describe the direction of conversion or the absence of underwriting for the conversion.

The Conversion Privilege lets you move from a group life policy to an individual life policy without having to prove you’re still insurable. When you leave the group or your coverage ends, you can convert to an individual policy and keep life insurance in force, typically paying premiums based on your current age. The key point exam-wise is that no medical exam is usually required to do this conversion, sometimes with the only restriction being a time limit to exercise the option and a cap on how much new coverage you can obtain.

So the best description is the option that says you can convert without a medical exam. Requiring a new medical exam would defeat the purpose of the privilege, and the other options don’t accurately describe the direction of conversion or the absence of underwriting for the conversion.