Term to permanent conversion: how is conversion from term to permanent typically accomplished?

• A. Requires full medical underwriting at conversion.
• B. Converts automatically at the end of term without any action.
• C. Converts only through rider with premium increase.
• D. Many term policies can be converted to a permanent policy without evidence of insurability before a specified time or age.

Answer: (D)

The idea being tested is the term-to-permanent conversion feature. Many term life policies include a conversion option that lets you switch to a permanent policy without needing new medical evidence, as long as you convert within a specified time frame or before a certain age. This protects your insurability if health changes later, and the new permanent policy’s cost is based on your age at conversion.

That’s why the best choice is the one that states you can convert to permanent coverage without evidence of insurability before a set time or age. The other statements don’t fit: conversion isn’t automatic at the end of the term—you must elect it within the allowed window. Underwriting is typically waived at conversion, not required anew. And while some policies might involve riders, the standard conversion feature itself doesn’t require a separate rider with a mandatory premium increase for the conversion to occur.