Which of the following is a characteristic of convertible term policies?

Convertible term policies are designed with the ability for policyholders to convert their term insurance into a permanent life insurance policy, such as whole life insurance, without having to provide evidence of insurability. This means that even if the insured's health has deteriorated, they can still convert their policy, which protects them from the risk of being uninsurable later on. This feature provides flexibility and peace of mind, making it a significant aspect of convertible term policies.

The other options present misunderstandings of convertible term policies. Unlike permanent policies, convertible term policies do not accumulate cash value, nor do they typically require a physical exam for conversion. Additionally, while they do have a specified term, the primary benefit is the conversion feature rather than the expiration of coverage.