Conversion Rights ****

Conversion on termination of group eligibility ****

An individual has 31 days to convert from group life to an individual plan, regardless of their insurability (health). The insurer has the right not to allow a conversion from group term to individual term. It usually is from group term to some type of permanent coverage. The premium will be based on the insured's attained age and "class" of risk, i.e. smoker, lion tamer.

Death pending conversion *****

If an insured dies during the conversion process the death benefit is paid.

Types of eligible groups

1. Employer-Employee group. Employees of an employer, usually full-time.
2. Labor Union group. The policy is owned by the union to cover its members since the members may work for several employers during the year.
3. Trustee group. The trustee owns the policy for the members of two or more employers (METs and MEWAs).
4. Debtor group. A single creditor is the policyowner, and it covers the lives of the respective debtors for the amounts owed.
5. Association group. The association has to have formed for a purpose other than obtaining insurance and must have existed for two years before buying the insurance and have at least annual meetings. If it's noncontributory then all members have to be covered but if contributory then at least 100.
6. Credit Union members. Credit unions and their members are permitted to have a group life insurance policy which provides coverage equal to the amount of share balance held by the member.

Dependent Coverage

Dependent spouse and children of a member of a group may be covered up to the amount on the employee or member.

Employee life

Group life insurance is for the benefit of the employees. Therefore the beneficiary can not be the business. The term employee includes employees of one or more subsidiary corporations. The premium is paid by the employer, either from the employer's funds (non-contributory) or from employee funds (contributory) or both. Remember, if it is non-contributory, the plan must cover 100% of all eligible employees.

Assignment of proceeds

Any person insured under a group life insurance policy is allowed to assign their rights of ownership under that policy, including having an individual policy issued and the right to name a beneficiary.