Final answer:
To convert a convertible term policy in insurance, premium payment for the new policy is the primary requirement. Proof of insurability is not needed, the term policy must not have lapsed, and the beneficiary's consent is not required.Therefore, the correct answer is b) Premium payment.
Step-by-step explanation:
The question involves understanding the requirements for converting a convertible term policy in insurance. For the conversion or exchange to take place in a convertible term policy, proof of insurability is generally not required. The primary requirement is the premium payment for the new policy. The conversion feature allows policyholders to switch from a term policy to a permanent life insurance policy without having to show evidence that they are still insurable.
A lapse of the term policy is not required and, in fact, would typically prevent conversion since the policy needs to be in force. Lastly, while the beneficiary can be an important part of the policy's terms, their consent is not a requirement for the policyowner to convert the policy.