The correct answer is A. Whole life policy.
A term life policy is a type of life insurance policy that provides coverage for a specified period of time, usually 10, 15, 20, or 30 years. If the insured person dies during the term of the policy, the death benefit is paid to the beneficiaries. If the insured person does not die during the term of the policy, no benefits are paid.
A whole life policy is a type of life insurance policy that provides coverage for the entire life of the insured person. The death benefit is paid to the beneficiaries regardless of when the insured person dies. Whole life policies also typically include a savings component, which can be used to accumulate cash value over time.
The conversion option is a feature of some term life policies that allows the policyholder to convert the policy to a whole life policy at a later date. This can be a valuable option if the policyholder’s health deteriorates and they become uninsurable for a whole life policy.
The other options are not correct because they are not types of life insurance policies. A mortgage policy is a type of insurance that protects the lender in the event that the borrower defaults on their mortgage. A bank FD is a type of deposit account that offers a fixed rate of interest for a specified period of time. A decreasing term policy is a type of term life policy in which the death benefit decreases over time.