What is a characteristic of Convertible Term Life Insurance?

Convertible Term Life Insurance is designed with the unique feature that allows the insured individual to convert their term insurance policy into a permanent life insurance policy at the end of the term or at certain points during the policy's life without the need for a medical exam. This characteristic is particularly beneficial for policyholders who may develop health issues over time and may not qualify for new coverage if they were to apply for a permanent policy later.

This flexibility provides significant long-term value and security because it enables policyholders to maintain insurance protection as their needs evolve, transitioning from temporary coverage to permanent solutions that offer benefits like lifelong coverage and potential cash value accumulation.

The other options reflect misinterpretations of Convertible Term Life Insurance; it can indeed be transformed into another type, it doesn't solely address temporary risks, and while costs can vary, convertible term policies are not inherently more expensive than whole life insurance.