Life Insurance FundamentalsQuestion 124 of 315
What is the main advantage of the convertible feature in a term life policy?
a.The policyowner receives all premiums back at the end of the term
b.The premium decreases each year as the insured ages
c.The death benefit increases automatically with inflation
d.The policyowner may exchange the term policy for a permanent policy without proof of insurability
Explanation
Convertibility lets the policyowner exchange the term contract for permanent insurance (typically whole life or universal life) without a medical exam or new evidence of insurability. This protects an insured whose health has worsened.
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)