The conversion privilege provision allows an employee that participates in a group plan to convert their group life insurance policy into an individual life insurance policy with little hassle, without having to go through another approval process or a medical exam.
What is group term life feature?
Group term life insurance is a type of term insurance in which one contract is issued to cover multiple people. The most common group is a company, where the contract is issued to the employer who then offers coverage as a benefit to employees.
What is a noncontributory group term life plan?
Noncontributory - Group life insurance plans are those in which the employer pays the entire premium and the employee supplies no portion of the premium costs. Employers have the option of contributing to the employees' premium payments in part or in full.
What does the group term life plan cover?
Group Term Insurance Plans. ... Group term life insurance schemes offer financial independence to the concerned employee's family in the event of death. It is intended to provide monetary guarantee to the beneficiary of the covered under the group term life insurance plan in the case of death of the insured.
Under which circumstance can a group life insurance policy be converted to an individual policy?
Most group life insurance policies contain a portability provision (also known as a right of conversion provision), which allows employees to convert their group life insurance coverage to an individual policy upon termination of employment.