What does "conversion privilege" refer to in a term life insurance policy?

In the context of a term life insurance policy, "conversion privilege" specifically refers to the option that allows the policyholder to convert their term policy into a permanent life insurance policy without having to provide evidence of insurability. This is a significant advantage for the insured, as it means that they can obtain permanent coverage regardless of any changes in their health status that may have occurred since the original term policy was issued.

This feature is particularly beneficial for individuals who may develop health issues or other circumstances that could make obtaining new life insurance coverage more difficult or expensive later on. The ability to convert to a permanent policy ensures that they can maintain life insurance protection even as their needs change or health improves, providing peace of mind and flexibility in financial planning.

The other options do not accurately define the concept of conversion privilege within term life insurance.