Which type of policy can group term life insurance typically convert to?

Group term life insurance can typically be converted to an individual permanent life insurance policy. This option allows individuals who are losing their group coverage, often due to changing jobs or retirement, to secure a policy that continues to provide coverage for their lifetime.

Permanent life insurance policies, such as whole life or universal life, offer lifelong coverage and can build cash value over time. This contrasts with term insurance, which only covers a specified period and does not accumulate any cash value. The conversion feature is an essential aspect of group term insurance, as it provides a safety net for individuals transitioning out of group coverage to maintain life insurance protection without having to undergo a new underwriting process.

While other policy types may be available in different circumstances, the ability to convert specifically to an individual permanent life insurance policy is a common and recognized benefit that supports long-term financial planning and protection for those who lose their group coverage.