Because of downsizing, Steve has been terminated from ABC Firearms. Two weeks later Steve is cleaning up his personal items at home and a gun misfires killing Steve. The beneficiary to Steve's policy will still receive payments. Why is this?

Question

Quizplus · Accepted Answer

Steve's beneficiary will receive payments from the policy because Steve is in the grace period for converting from the group policy to an individual policy. The grace period is usually 31 days and provides coverage during times of transition. Because Steve was terminated, standard provisions allow him time to find another policy without losing coverage in case of an accident.

Because of Downsizing, Steve Has Been Terminated from ABC Firearms