Which of the following is a characteristic of conversion from group to permanent life insurance?

This statement is incorrect because the premium for the new policy is actually based on the individual’s age at the time of conversion, not the age when they were first covered by the group policy. As individuals age, their risk profile changes, which impacts the premium costs for the new policy.

This option is false as conversion from group insurance can be to permanent life insurance, not just term insurance. Permanent life insurance provides lifelong coverage and builds cash value, which is distinct from term insurance that offers coverage for a specific period without cash value accumulation.

This choice is misleading because one of the primary advantages of converting from group to permanent insurance is that proof of insurability is typically not required. This allows individuals to secure coverage regardless of any changes in their health status after leaving the group plan.