Final answer:
If Marsha passed away within the permissible period for converting her life insurance policy, her beneficiaries may still be entitled to the insurance payout, as life insurance is intended to cover instances when the policyholder dies. It's crucial for beneficiaries to reach out to the insurer quickly to start the claims process.
Step-by-step explanation:
If Marsha left her company and died during the period allowed for her to convert her life insurance to an individual policy, typically the benefits of the policy could still be paid out to Marsha's beneficiaries, despite not having completed the conversion. Life insurance policies are intended to provide financial protection and pay out benefits when the policyholder dies, contingent upon the policy being in force and premiums being up to date at the time of the policyholder's death.
If Marsha was within the grace period for conversion, her coverage would likely still be effective as these provisions are designed to protect the policyholder during the transition. To ensure the payment of the policy's benefits after her death, her beneficiaries should contact the insurance company promptly to file a claim. The insurer will then guide them through the claim process and inform them of any necessary documentation to prove the claim and finalize the payment of benefits.