PSI Ohio Insurance Practice Exam 2026 – All-in-One Guide to Exam Success

The feature of term insurance that allows policyholders to change to permanent protection within a designated period is known as convertible. This means that during the term of the insurance policy, the insured has the option to convert their term insurance into a permanent policy without having to provide evidence of insurability. This is a significant benefit as it allows individuals to secure lifelong coverage even if their health situation changes over time.

The convertible feature is particularly appealing for those who might initially choose a lower-cost term option but later want the additional benefits that permanent insurance offers, such as cash value accumulation and lifelong protection. By including this feature in a term policy, insurers provide clients greater flexibility and long-term planning capability.