If an insured dies while converting group life insurance to an individual policy, what happens to the claim submitted by the beneficiary?

When an insured individual passes away during the process of converting group life insurance to an individual policy, the full benefits under the Master Contract are payable to the beneficiary. This outcome is grounded in the principle that the insurance coverage is intended to provide protection for the insured even during the conversion period.

It is essential to realize that the conversion option is a guaranteed right, allowing the insured to maintain life insurance coverage without needing to provide evidence of insurability. Therefore, since the insured was a participant in the group policy at the time of death and was in the process of ensuring continued coverage, the contract stipulates that the full benefits remain intact. This ensures that beneficiaries are not left without support during such a critical time.

The assurance of full benefits under the Master Contract reflects the policy's intent to protect both the insured and their beneficiaries, regardless of the timing of the conversion. This guarantees that the financial support intended for the beneficiary is delivered, acknowledging the ongoing risk and commitment involved in individual life insurance coverage even while transitioning between policy types.