What does the conversion privilege in an insurance policy allow?

The conversion privilege in an insurance policy specifically allows an insured individual to convert their current policy into a new policy that continues coverage without the need for evidence of insurability, usually at the end of a group insurance plan or when certain life events occur, such as leaving a job where group coverage was provided. This feature is particularly beneficial because it ensures that individuals can maintain their coverage even if they have developed health issues that would otherwise affect their ability to secure new insurance in the future.

This privilege is designed to protect policyholders by enabling them to transition their coverage seamlessly rather than facing potential gaps in coverage or the need for a new underwriting process that could deny them coverage based on their health status.