What type of insurance can an insured convert to upon termination of membership in the insured group?

When a person who is part of a group insurance plan leaves that group—whether due to employment changes, retirement, or other reasons—they often have conversion rights. This means they can convert their group coverage into an individual policy. The specific type of coverage available for conversion varies based on the policy terms and state regulations.

In this context, being able to convert to a whole life insurance policy without proof of insurability is advantageous for individuals leaving a group plan. Whole life insurance provides lifelong coverage and builds cash value, appealing characteristics that contribute to its attractiveness upon conversion. The elimination of proof of insurability ensures that individuals can secure coverage regardless of their current health status, which can be particularly valuable if they have developed health issues while covered under the group plan.

This option for conversion is designed to protect the insured from potential health changes that could make it difficult to obtain coverage in the future. Hence, being able to convert to whole life without proof of insurability aligns with the primary objectives of insurance policies that offer conversion benefits, ensuring continuity of coverage with favorable terms for the individual.