What feature is associated with a convertible term insurance policy?

A convertible term insurance policy is characterized by its feature that allows policyholders to exchange their term insurance for a permanent insurance policy without undergoing additional medical underwriting. This flexibility is particularly valuable for individuals who may wish to secure lifelong coverage as their needs change over time. The ability to convert to a permanent policy ensures that the insured can adapt their coverage in response to health deterioration or changes in financial circumstances, which might make obtaining a new policy more challenging in the future.

In contrast, term insurance typically covers a specific time frame and is designed to provide death benefits for that duration, which is why the other options do not apply. The statement regarding holding it for a short duration focuses on the nature of term policies in general, but it is the conversion feature that distinguishes convertible term from regular term insurance. Lower guaranteed rates relate to certain types of policies but do not specifically explain the nature of convertible term insurance. Similarly, stating it is never renewable contradicts the fundamental nature of many term products, including convertible term insurance, which often retains the option for renewability under specific conditions.