Short answer: Texas law gives the employee the right to an individual policy, without evidence of insurability, if they apply and pay the first premium within 31 days after employment ends. The new policy can be any non-term individual policy the insurer customarily issues, up to the amount that ended, at the insurer’s regular rates for the person’s age and risk class.
Under the Texas Insurance Code, every group life policy must let an insured whose coverage ends because employment or eligibility ends obtain an individual life policy without disability or other supplementary benefits. The individual must apply and pay the first premium no later than the 31st day after termination, and the policy must be issued without evidence of insurability.
The person may choose any individual policy, other than term, that the insurer customarily issues at their age, in an amount up to the coverage that ended. The premium is the insurer’s then customary rate for that form and amount, the person’s class of risk and age. Because it is permanent coverage at individual rates, conversion is often expensive; its value is for someone who could not otherwise qualify.
If the person dies during the 31-day window, before the individual policy takes effect, the amount they could have converted is payable as a claim under the group policy, whether or not they applied or paid. Tell every departing employee about conversion in writing before the window closes.