An insured covered under an employer's Group Life policy has resigned. Which statement about conversion privileges is NOT true?

The concept of conversion privileges allows individuals covered under a group life insurance policy to transition to an individual policy without having to provide proof of insurability when they leave the group (e.g., after resigning from their job). The correct statement emphasizes the various provisions and limitations associated with such conversions.

When considering the statement regarding converting to a $15,000, 15-Year Level term policy, it is important to note that the specifics of the policy types available for conversion can vary based on the terms set by the group life insurance provider and the employer’s chosen plan parameters. The conversion feature generally allows the insured to convert to an individual policy but does not guarantee a specific policy type like the $15,000, 15-Year Level term. Instead, the options may include varying types of individual policies that are determined by the insurer.

The other options correctly outline the standard requirements and conditions associated with conversion privileges. The insured must indeed apply for conversion within a designated time frame (usually 31 days after resignation), conversion is guaranteed if the application is made on time, and the premiums for the new policy will depend on factors such as the individual’s age at the time of conversion and the type of insurance policy selected.