Which type of term life insurance allows the policyholder to change to permanent coverage without proof of insurability?

The correct choice is convertible term insurance. This type of term life insurance provides the policyholder with the option to convert their term policy into a permanent life insurance policy, such as whole life or universal life, without the need to provide evidence of insurability. This means that the policyholder can switch to a more permanent coverage option regardless of their health status at the time of conversion.

The flexibility to convert is particularly valuable as it allows individuals who may develop health issues during the term period to secure permanent coverage, which they might otherwise be unable to obtain. This feature is especially appealing during the later years of a term policy when health concerns may become more prevalent.

In contrast, renewable term policies allow for the extension of coverage for an additional term, but they typically require proof of insurability when transitioning to a new term. Decreasing term policies have coverage amounts that decrease over time, and level term policies maintain a consistent death benefit but do not come with the convertible feature. Therefore, convertible term insurance's unique attribute of allowing conversion without proof of insurability makes it the correct answer.