When an employee converts group insurance to an individual policy, the premium is based on...

When an employee converts group insurance to an individual policy, the premium is based on the insured's attained age. This means that the premium reflects the age of the individual at the time of conversion, which is critical because age is a significant factor in determining life insurance premiums. As individuals age, the risk to the insurer generally increases, leading to higher premiums.

This approach ensures that the premium accurately corresponds to the individual's current health risk profile, as older individuals are statistically more likely to experience health issues that may lead to claims. Therefore, the use of attained age for premium calculation aligns with the insurance industry's practice of adjusting rates according to the risk presented by the insured's age.