Conversion Privilege - Life Insurance Sample Clauses

Conversion Privilege - Life Insurance. If an employee's coverage ceases because his or her employment or membership within the eligible classes ends, the employee may convert the insurance to some form of individual life policy offered by the insurance carrier without having to pass a physical examination. If an employee qualifies for the Retiree Death benefit, the amount of it will be deducted from the amount of life insurance he or she is otherwise entitled to convert. An employee will have thirty-one (31) days to make application for conversion and to pay the required premium following termination of insurance. However, if you are given written notice of your right to convert, the employee has no more than thirty-one (31) days from the date of termination of insurance, or until twenty-five (25) days after the employee is given notice, whichever is the later date. If an employee should die within the thirty-one (31) day period after the coverage ends, the amount of insurance will be paid to the beneficiary. If the life insurance is payable under the group policy, payment will not be made under the converted policy; and the premiums paid for the converted policy will be refunded.