What action must an employee take to utilize the conversion privilege after leaving their employer?

To utilize the conversion privilege after leaving an employer, an employee must apply for a converted policy within a specified time. This privilege allows the employee to convert their group life insurance policy into an individual policy, typically without the need for medical underwriting, ensuring that they retain coverage even after leaving the employment that provided the group plan.

The conversion process usually requires the individual to submit an application within a certain timeframe, often stipulated in the terms of the group policy. This timeframe is critical, as failing to apply within it may result in the loss of the opportunity to convert coverage. The ability to convert insurance is particularly important for employees who may have pre-existing conditions, as it provides a way to secure life insurance that might otherwise be harder to obtain.

The other options do not accurately depict the steps required to utilize the conversion privilege. Immediate termination of all coverage could lead to a gap in insurance, and choosing to remain with group coverage is typically not possible once employment ends. While notifying the employer about the change may be good practice, it is not a required action to secure the conversion privilege.