What does convertible term allow?

What does convertible term allow?

• A. Convert to a universal life policy without evidence of insurability
• B. The right to convert to a permanent policy without evidence of insurability, with premiums based on attained or issue age
• C. Convert to a term policy with upgraded benefits
• D. Convert to a whole life policy only after age 65

Answer: (B)

Converting term means you can swap your term coverage for a permanent policy (like whole life) without needing to prove your health again. That means no new medical exam or underwriting at the time of conversion. The price for the new permanent policy is set based on your age at conversion—either your attained age (your current age) or the issue age, depending on the contract. This lets you keep lifelong protection and often build cash value, though the premium will be higher than the term since permanent coverage lasts for life. This option is not about converting to a term with upgraded benefits, nor about converting after a specific age only; it specifically enables a conversion to permanent coverage without new evidence of insurability and uses age-based pricing.

Converting term means you can swap your term coverage for a permanent policy (like whole life) without needing to prove your health again. That means no new medical exam or underwriting at the time of conversion. The price for the new permanent policy is set based on your age at conversion—either your attained age (your current age) or the issue age, depending on the contract. This lets you keep lifelong protection and often build cash value, though the premium will be higher than the term since permanent coverage lasts for life. This option is not about converting to a term with upgraded benefits, nor about converting after a specific age only; it specifically enables a conversion to permanent coverage without new evidence of insurability and uses age-based pricing.