Which provision allows a policyowner to convert a term life policy to a permanent one without proof of good health?

The provision that allows a policyowner to convert a term life policy to a permanent life policy without proof of good health is known as the conversion provision. This feature is significant because it provides policyholders with the opportunity to extend their life insurance coverage even if their health status has changed since they purchased the term policy.

When a policy has this conversion option, the insured can switch to a whole life or universal life policy within a specified period, typically during the term period of the insurance. This transition is valuable for individuals who may now have health concerns that would make obtaining a new permanent policy difficult or impossible. The lack of requirement for proof of good health ensures that those who have developed health issues can secure ongoing coverage rather than losing it when the term expires.

Other options, such as modification and exchange provisions, don't refer specifically to this conversion process and may cover different aspects of policy adjustments or swaps, but they do not highlight the conversion feature that directly addresses the need for health status flexibility. The adjustable provision typically refers to policies that allow changes in the premium or death benefit but does not pertain to transforming a term policy into permanent coverage. This ability to convert is therefore a critical consumer-friendly feature in providing continuous life insurance coverage.