What provision allows a policyowner to convert a term life policy to a permanent one without providing proof of good health?

The correct choice pertains to the provision known as conversion, which is a feature in some term life insurance policies. This provision allows policyowners to convert their term life insurance into a permanent life insurance policy without having to provide evidence of insurability or proof of good health.

This is significant because, as the term policy approaches its expiration, the insured may find that their health has changed, making them more likely to be denied coverage or subjected to higher premiums if they were to apply for a new policy. The conversion option secures coverage and allows continued protection regardless of the policyowner's current health status.

Understanding the nuances of this provision is crucial for both insurance professionals and customers to ensure that they can maintain their coverage under conditions that may otherwise be burdensome due to health issues. Other options such as renewal, reinstatement, and modification refer to different aspects of policy management and do not specifically relate to the ability to shift from a term policy to permanent coverage without medical underwriting.