Which statement about the convertibility option under a term life insurance policy is NOT true?

The statement that the death benefit will be reduced by 50% upon conversion is not true regarding the convertibility option of a term life insurance policy. When a term life insurance policy allows for conversion to a permanent policy, it typically maintains the full death benefit amount rather than reducing it.

The other statements accurately reflect the features of a convertibility option. Conversion without proof of insurability is a key advantage of this feature, allowing policyholders to obtain permanent coverage regardless of any health changes since the purchase of the term policy. Additionally, the premiums for the new policy are determined based on the insured’s attained age, aligning with typical underwriting practices for permanent life insurance. Finally, the option indeed allows the insured to switch from a temporary term policy to a more permanent coverage solution, which offers lifelong protection.