Which feature of term insurance allows for a change to permanent protection within a designated period?

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Study for the PSI Ohio Insurance Test. Use flashcards and multiple choice questions with explanations. Get ready to ace your exam!

The feature of term insurance that allows policyholders to change to permanent protection within a designated period is known as convertible. This means that during the term of the insurance policy, the insured has the option to convert their term insurance into a permanent policy without having to provide evidence of insurability. This is a significant benefit as it allows individuals to secure lifelong coverage even if their health situation changes over time.

The convertible feature is particularly appealing for those who might initially choose a lower-cost term option but later want the additional benefits that permanent insurance offers, such as cash value accumulation and lifelong protection. By including this feature in a term policy, insurers provide clients greater flexibility and long-term planning capability.

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