What characteristic defines a convertible term insurance?

Convertible term insurance is distinguished by its ability to be transformed into a permanent insurance policy without requiring the insured to undergo a medical examination. This feature is particularly valuable for policyholders who may experience health changes over time, as it provides convenience and assurance that they can maintain their coverage in the event of deteriorating health. This option gives individuals the flexibility to transition their coverage based on their changing needs and circumstances at the end of their term.

The other choices highlight different aspects of insurance but do not capture the essence of convertible term insurance. Offering low premiums for a specified term pertains to the nature of term insurance in general rather than its convertible feature. While the guarantee to claim benefits at any time pertains more to permanent insurance policies, renewable options address the ability to extend term policies, yet do not offer the same level of conversion or flexibility as convertible term insurance.