What generally happens to group life insurance policies upon the retirement of an employee?

When an employee retires, the typical procedure regarding group life insurance policies is that they may be converted into an individual policy. This option is significant because group life insurance is often tied to employment; once an employee leaves the organization, they generally lose those group benefits. Conversion allows the individual to maintain life insurance coverage without the need for medical underwriting, although the coverage might be at a higher premium since it transitions from group to individual terms.

This option reflects a common practice in the insurance industry, providing a safeguard for individuals to ensure they have continued coverage, which is especially important as they age or if their health status changes upon retirement. Since group policies are generally designed to end when employment terminates, this conversion feature allows employees to retain some benefits and coverage continuity.