The correct answer is C. A Convertible Term policy can be converted into a whole life policy.
A convertible term policy is a type of term life insurance policy that allows the policyholder to convert the policy into a permanent life insurance policy, such as a whole life policy, at a later date. This can be done without having to provide evidence of insurability, which means that the policyholder will not have to undergo medical underwriting again.
There are a few reasons why someone might want to convert a term life policy into a whole life policy. One reason is that whole life policies offer lifetime coverage, while term life policies only offer coverage for a specific period of time. Another reason is that whole life policies build cash value, which can be used for a variety of purposes, such as retirement savings or college tuition.
If you are considering converting a term life policy into a whole life policy, it is important to speak with an insurance professional to discuss your options and determine if a conversion is right for you.
Option A is incorrect because a convertible term policy can be converted into a whole life policy.
Option B is incorrect because a convertible policy can only be converted into a whole life policy, not a money back cover.
Option D is incorrect because a converting term policy cannot be converted into a decreasing term policy.