What happens if an employee converts from group to individual life insurance after changing jobs?

When an employee converts from group to individual life insurance after changing jobs, the coverage will be maintained through the conversion process, though it may differ from the original group policy. This is because converting to an individual policy generally allows the individual to continue their life insurance coverage without undergoing medical underwriting, albeit with benefits that may be different or adjusted in terms of coverage limits or premiums.

The conversion option is designed to provide continuity of coverage for employees who leave a group plan, protecting them from potential insurability issues that could arise if they tried to obtain a new policy after experiencing changes in health. The terms, such as the benefits and coverage amounts, can vary, reflecting the insurer's guidelines for individual policies.

In contrast, starting a new group policy is not the method used during a conversion since group policies are linked to employment. If conversion options are available, the employee does not lose their insurance eligibility just because they’ve changed jobs, making this pathway favorable for maintaining coverage.