Which type of term life insurance includes a conversion privilege to a permanent policy without evidence of insurability?

The correct answer is Convertible Term Life Insurance. This type of term life insurance allows the policyholder to convert their term policy into a permanent policy, such as whole life or universal life, without needing to provide evidence of insurability. This means that the insurer cannot deny the conversion based on the insured’s health status at the time of conversion, offering a valuable opportunity to secure lifelong coverage even if the insured’s health deteriorates.

Convertible term policies are particularly advantageous for individuals who want the flexibility to adapt their insurance needs as their life circumstances change. Many term policies include this feature, making it easier for policyholders to transition to permanent coverage at a later date, typically before the term expires.

In contrast, decreasing term life insurance is designed to provide a death benefit that decreases over time, which may not align with someone’s need for lifelong coverage. Level term insurance offers a consistent death benefit amount but does not inherently include conversion privileges. Increasing term insurance, while providing a death benefit that increases over the term, also doesn’t necessarily offer conversion options. Therefore, the aspect of conversion without healthcare scrutiny uniquely identifies convertible term life insurance as the correct choice.