Texas Life Agent Practice Exam

How many days after employment termination can you convert to an Individual Whole Life Insurance policy without a physical exam?

1. 14 days

2. 21 days

3. 31 days

4. 60 days

The correct answer is: 31 days

The correct answer is based on insurance regulations regarding the conversion privilege of group life insurance policies. When an individual's employment is terminated, they typically have the right to convert their group life insurance coverage to an individual whole life insurance policy without undergoing a physical examination. In Texas, as well as in many other states, this conversion must occur within a specified time frame, which is 31 days from the date of employment termination. This allows individuals to maintain continuous life insurance coverage without the need for additional medical underwriting, which is particularly beneficial if their health status has changed or if they were not able to secure new coverage immediately. The 31-day period provides adequate time for the affected individual to explore their options and make decisions regarding their insurance needs following employment termination. It is crucial for those in the insurance field to be familiar with this provision, as it can significantly impact clients' decisions about their life insurance coverage.