PSI Life Exam Practice Test

How many days does a terminated employee have to convert their group life insurance to an individual policy?

1. 60 days

2. 45 days

3. 31 days

4. 90 days

The correct answer is: 31 days

When an employee is terminated, they typically have a finite period during which they can convert their group life insurance to an individual policy. This period is often designated to ensure that the individual does not lose their insurance coverage immediately following termination. The standard period allowed for conversion in most group insurance policies is 31 days. During this time, the terminated employee can apply for an individual policy without having to undergo a medical examination or provide proof of insurability, which is a vital benefit allowing them to maintain coverage despite changes in their employment status. Understanding this time frame is crucial because, after the 31-day period, the individual loses the right to convert the group coverage, and any application for coverage would then require going through standard underwriting processes. This distinction reinforces the importance of promptly addressing insurance needs upon termination of employment.