What is a key feature of the conversion privilege from group to individual insurance?

The correct answer highlights a crucial aspect of the conversion privilege from group to individual insurance, specifically that the premium for the new individual policy is determined based on the insured's current age at the time of conversion. This is important because as individuals age, insurance premiums generally increase due to the higher risk associated with older age. Therefore, when converting from a group plan to an individual plan, the insured must be prepared for potentially higher premiums reflective of their current age, rather than the age at which they originally entered the group plan.

This understanding underscores why the individual might see an increase in their premium costs upon conversion. They must be aware that while they have the option to convert their coverage even without evidence of insurability, the cost implications tied to their age at the time of conversion are significant.

The other aspects of the conversion privilege provide context but are not defining features. For instance, the option that the new policy can exceed the face value of the old policy is not standard; typically, the new individual policy will not exceed the limit of the original group coverage. The notion of not having a grace period can vary based on the specific policy rather than being a universal characteristic of conversion privileges. Finally, while it's true that conversion is allowed regardless of job changes