If an insured terminates membership in group life insurance, to what type of insurance can the insured convert the coverage?

In the context of group life insurance, many policies include a conversion privilege that allows an insured individual to convert their group coverage into an individual policy upon termination of their membership.

Whole life insurance is the most common option provided under these conversion privileges. This is because whole life insurance offers lifelong coverage and builds cash value over time, which can be beneficial for the policyholder after they leave a group plan. The insurer typically allows the insured to convert to a whole life policy without requiring proof of insurability, easing the transition for those who may have health issues that would otherwise make purchasing individual coverage challenging.

Other types of insurance like term life, universal life, and variable life may not be available or may require additional qualifications that the conversion privilege does not typically cover. Group policies are designed with whole life conversions in mind, making it the standard choice for individuals leaving group coverage.