What does the convertible feature of a term insurance policy allow?

The convertible feature of a term insurance policy allows the policyholder to convert their term policy into a permanent insurance policy without the need to provide evidence of insurability. This is a significant benefit because it enables individuals to secure lifelong coverage even if their health status changes during the term of the policy. As people age or if they develop health issues, obtaining new life insurance can become challenging or expensive; therefore, the ability to convert provides peace of mind and flexibility.

In this feature, the insured can capitalize on their existing term policy and transition to a permanent insurance product without undergoing a new underwriting process, which assesses health risks. This means that even if the insured's health has deteriorated, they are not penalized for that and can maintain access to life insurance.

The other choices do not accurately capture this unique benefit of conversion without underwriting, focusing instead on different aspects or benefits of insurance policies that do not relate to the specific convertible feature of term insurance.