What option does an employee have after being fired and holding a $25,000 group term life coverage?

When an employee is terminated from their job and they hold a group term life insurance policy, they typically have the option to convert a portion of that coverage to an individual policy. In this case, the employee can convert the group term life coverage into an individual whole life policy, which allows them to maintain some level of life insurance protection independent of their former employer.

This conversion option is beneficial because it provides the individual with continued coverage without the need for additional underwriting, as long as the application for the conversion is made within the specified time frame. The conversion generally allows conversion to a whole life policy, which has the added benefits of permanent coverage and a cash value component.

The given answer highlights that the employee can convert to a $25,000 individual whole life policy, which aligns with the typical benefits provided under group term life insurance plans upon termination of employment. This ensures that the insured can maintain some level of financial protection, even after losing their job.