Term to permanent conversion: what is a key feature of this option?

• A. It requires a new health examination each time you convert.
• B. It allows converting term life coverage to permanent life coverage without new underwriting.
• C. It converts the policy to term life.
• D. It increases the premium to cover higher death benefit.

Answer: (B)

Term-to-permanent conversion lets you swap a term life policy for a permanent policy without needing new underwriting. This option is typically available within a defined conversion period, and the permanent policy is issued based on your age at the time of conversion, with no medical exam or health questions required. This is especially valuable if health has changed since you bought term coverage, because you can maintain protection without re-qualifying. Premiums for the new permanent policy will reflect your age and the type of permanent policy chosen, but the key feature is not having to undergo underwriting again. The other statements don’t capture that core benefit: one suggests a new health exam is needed, another implies a conversion to term, and another focuses on premium increases to cover a higher death benefit, none of which define the conversion feature as directly as the no-underwriting aspect.