What is the process called when an employee changes from group life coverage to an individual policy after termination?

• A. Conversion
• B. Portability
• C. Underwriting
• D. Rollover

Answer: (A)

Conversion is the idea. When group life coverage ends because you’ve left the job, you usually have a conversion privilege that lets you switch to an individual life policy without proving your health again. You’d pay the standard individual premium based on your attained age, and the new policy is issued without new underwriting, as long as you convert within the allowed time after termination. This keeps you insured without a lapse in coverage.

Portability would involve moving to another employer’s group plan, which isn’t what happens when the original group coverage ends. Underwriting is the process insurers use to assess risk and set premiums, not the act of changing the policy type. Rollover applies to moving retirement plan funds, not life insurance coverage.