What is the Life Insurance Conversion Option?
Submitted by Benefits Consultant No Comment
The Life Insurance conversion option provides an employee whose group insurance coverage is ceasing to convert their current Basic and Optional Life insurance amount to an individual insurance policy without the need to provide evidence of insurability. To exercise the conversion option, the employee must fill out and return the relevant forms to their group insurance provider within 30 days and choose an individual life insurance product from the same insurer.For example, if an employee had basic life insurance coverage under the employer’s group insurance contract in the amount of $100,000, upon termination from the organization, the employee could convert his life insurance coverage to an individual insurance product within 30 days and not be required to provide evidence of good health.
For a broader discussion, please see our group life insurance tutorial.
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