What additional benefit does an individual policyholder gain by converting from group term life insurance?

When an individual converts from group term life insurance to an individual policy, one of the primary benefits is the protection against medical underwriting. In group insurance, coverage is often granted without the need for health evaluations, allowing participants to obtain coverage despite potential health issues.

When converting to an individual policy, the individual typically retains this advantage, meaning they can obtain coverage without undergoing the usual medical underwriting processes that individual policies often require. This is particularly beneficial for members of the group who may have developed health issues since joining the group plan, as it ensures they do not lose their insurance coverage due to deteriorating health or increased risk factors.

Other potential benefits like free coverage for the first year, access to higher coverage limits, or lower premium rates may vary and are not guaranteed with a conversion. Each of these factors depends on the specific terms of the individual policy and the insurance company's guidelines, making the protection against medical underwriting a distinct and significant advantage during the conversion process.