What can policyholders use to convert their term insurance to a permanent policy without additional requirements?

The ability for policyholders to convert their term insurance to a permanent policy without additional requirements is typically referred to as a "conversion privilege" or "conversion option." This feature allows policyholders to switch to a permanent life insurance policy, such as whole life or universal life, usually during the term period.

In this context, the correct option relates specifically to the lack of requirement for proof of insurability. When a policyholder exercises the conversion privilege, they are not required to submit evidence of being in good health or to provide medical information that could affect their eligibility for the new policy. This is particularly beneficial for individuals whose health may have declined since the inception of their term policy, as they can secure permanent coverage without the risk of being denied due to health issues or increased premiums associated with their current health status.

The other options, while they may be necessary for other types of applications or insurance processes, do not relate to the specific conversion process that allows immediate transition to a permanent policy without the need for additional medical underwriting or information.