What occurs to S's claim if she dies while converting group life insurance to an individual policy?

When someone dies while in the process of converting group life insurance to an individual policy, the benefits that were provided under the master contract typically apply. This means that full benefits are payable as if the conversion process had been completed, ensuring that the insured’s beneficiaries receive the full coverage amount.

The rationale behind this is that insurance companies often have provisions in place to protect the interests of policyholders and their beneficiaries during such transitional phases. The coverage provided under the master contract remains in effect, even if the insured has not yet completed the individual policy conversion. This provision helps ensure that the insured is not left unprotected during this crucial time and that their beneficiaries are supported financially in the event of an unexpected death.

The other options do not align with typical insurance practices regarding group-to-individual transitions. For instance, stating that no benefits are paid would contradict the contractual obligations of the insurer to provide a death benefit as the individual was still covered under the group policy during the conversion process. Similarly, partial benefits or delays do not reflect the protections typically afforded to individuals undergoing conversion as they transition to an individual policy.