What does "convertible term insurance" allow a policyholder to do?

Convertible term insurance provides policyholders with the option to convert their term policy into a whole life policy without undergoing further underwriting. This feature is significant as it allows the insured to maintain coverage even if their health status changes, which may make obtaining new insurance more difficult, or possibly more expensive. By converting to a whole life policy, the policyholder also gains the benefits associated with permanent insurance, such as lifelong coverage and a cash value component that can grow over time.

This option becomes particularly appealing as individuals age or if they develop health conditions that might otherwise limit their insurability. The flexibility to convert the policy provides peace of mind and security, ensuring that they can continue to have life insurance coverage regardless of their future health status.

Other options focus on changing terms or beneficiaries but do not capture the unique advantage that convertible term insurance provides concerning coverage continuity and underwriting ease.