Final answer:
The provision that allows for term life insurance to be converted to whole life insurance based on the purchaser's original age at the time of term policy acquisition is called 'original age conversion'. This can result in more favorable premium rates than using the current age.
Step-by-step explanation:
The term that best describes the convertibility provision allowing Ricky d., age 42, to convert his level term policy to a whole life policy using the age of 38 to determine future premiums is known as the original age conversion option.
This option allows policyholders to convert their term life insurance to a whole life policy based on their age when they originally purchased the term policy, which can be advantageous as it generally leads to lower premiums than if the conversion used the current age.
Cash-value (whole) life insurance is a type of policy that Ricky is interested in converting to.
Whole life insurance not only provides a death benefit but also has a cash value component that grows over time and can be used as an account for the policyholder's personal use. This type of policy can be a useful financial tool for long-term planning.