Who is entitled to an individual life insurance benefit during the conversion period if the employee dies?

During the conversion period of a group life insurance policy, if the employee who is covered by the policy dies, the benefits from that policy are typically paid out to the designated beneficiary. In many cases, the spouse is often named as the primary beneficiary in these policies due to the common structure of beneficiary designations.

When an employee passes away during the conversion period, the individual life insurance benefits are intended for that employee's dependents, with the spouse commonly being the first in line. This approach ensures that the surviving spouse receives the financial support they may need during a time of loss, reflecting the intent of life insurance to provide for those left behind.

Other options may not be the correct recipients of the life insurance benefit in this scenario. The employer would not benefit from the employee's death, while children might be designated if the spouse is not named or if the policy specifies otherwise. The estate could potentially receive benefits if there are no beneficiaries named, but in standard situations, the spouse is often the first choice to receive the proceeds directly. Therefore, recognizing the spouse as the recipient aligns with the typical practices of naming beneficiaries in individual life insurance coverage, especially in the context of conversion periods.