Category: Group risk fundamentals · Reviewed by Chrissie Anderson, Client Executive · Last reviewed 2026-06-10
A continuation option (also called a conversion option) is a feature of some group life and group critical illness policies under which an employee leaving the participating employer can apply for a comparable individual policy with the same insurer, without medical underwriting, provided the application is made within a defined window (typically 30–90 days of leaving). Premium for the individual policy is set at standard published rates for the leaver’s age at conversion.
Category: Group risk fundamentals Also known as: Conversion option, personal continuation Typical window: 30–90 days from cessation Related concepts: Active member, Group life insurance, Eligible employee
The continuation option matters because group risk cover ceases on the date the employee leaves the participating employer. Without continuation, the leaver might be uninsurable on the individual market because of health changes that have occurred since they were last individually underwritten. The continuation option provides a bridge.
There is no statutory requirement to offer continuation; whether it is offered depends on the policy. Where offered, the FCA Handbook (ICOBS 6) requires that scheme members be told about the option and the application window in scheme literature. The employer also has practical obligations under the Equality Act 2010 to ensure that leavers who are disabled or have ill health are not unjustly disadvantaged by failure to communicate the continuation option in good time.
The continuation policy normally matches the leaver’s previous level of group life cover, capped at the leaver’s previous insured sum (up to the scheme FCL). The individual policy is fully portable — it continues even if the leaver subsequently moves to a new employer and joins a different group scheme.
An employee with type 1 diabetes leaves her employer at age 48 to take up a new role; her previous employer’s group life scheme had an FCL of £600,000. Within the 60-day continuation window she applies for a personal life policy of £400,000 with the same insurer at published age 48 rates without further underwriting. The individual policy runs for the term she selects (e.g. 20 years).
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
Get a quote