When a person is in the process of converting their group life insurance to an individual policy but dies, what happens to the claim submitted by the beneficiary?

When a person is in the process of converting their group life insurance to an individual policy and dies during this transition, the correct outcome is that full benefits are payable under the master contract. This situation arises because the individual is typically still covered by the group policy until the conversion to the individual policy is finalized.

The conversion process is designed to ensure that individuals maintain life insurance coverage even as they transition from group to individual policies. Therefore, if the insured party passes away during this process, the beneficiary is entitled to the full death benefits as stipulated in the original group life insurance policy, also referred to as the master contract.

This provision serves to protect the insured and their beneficiaries from unintentional loss of coverage during what can often be a confusing transition period. It is essential that policyholders understand their rights throughout the conversion process to ensure their loved ones are adequately covered in such circumstances.