Final answer:
The process described in the question is called conversion, which is the process of changing a life insurance policy from one form to another. The correct option is b.
Step-by-step explanation:
The process described in the question, where Tim changes his existing group term life insurance to individual permanent life insurance after being terminated from his employment, is called conversion.
Conversion is the process of changing a life insurance policy from one form to another, such as from a group policy to an individual policy.
By opting for conversion, Tim can continue to have life insurance coverage even after leaving his job, providing him with a sense of financial security. The correct option is b.