What is the term for the option that allows insured employees to convert their group life insurance to an individual policy after termination?

The term that describes the option allowing insured employees to convert their group life insurance to an individual policy after termination is known as "Conversion." This process is essential because it enables individuals who have relied on group coverage to maintain their life insurance protection even after leaving their employment.

The conversion option typically allows the employee to obtain an individual policy without needing to provide evidence of insurability, which means that the insurance company cannot deny coverage based on health conditions the employee may have at the time of conversion. This is particularly important for individuals with health issues that could make it difficult to obtain a new policy on the individual market.

The other options, while they may relate to insurance in different contexts, do not specifically describe this process. Transfer may imply a change of ownership or assignment of benefits, but it doesn't address the transition from group to individual coverage. Continuation can relate to maintaining coverage at a reduced level but doesn't inherently imply converting to a new policy. Extension refers more to prolonging the benefits under existing terms rather than creating a new individual policy. Thus, conversion is the most appropriate term for this specific context.