When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, ______ _______ applies.

• A. grace period
• B. accidental death rider
• C. conversion provision
• D. nonforfeiture

Answer: (C)

The conversion provision is the feature that allows switching from a term policy to a permanent policy without showing proof of insurability. This means you can exchange term life for whole life even if your health has changed, and no medical exam is required at the time of conversion. The premium for the new permanent policy is based on your age at conversion (attained age), and the face amount often can be set to the term’s amount or up to a policy-specified maximum. There are typically time limits and age limits for when you can convert, and some benefits or riders from the term policy may not carry over. This is why the scenario describes applying when the exchange happens without health proof—the conversion provision specifically covers this situation.