Final answer:
The right to convert term coverage to permanent insurance is held by the policyholder. This allows increased flexibility and long-term benefits without the need for further medical exams, and this decision is solely in their hands.
Step-by-step explanation:
The individual who has the right to convert the existing term coverage to permanent insurance is A) The policyholder. This option provides the policyholder with the flexibility to make changes to their insurance policy that can benefit them in the long run, such as obtaining a policy that accumulates cash value or offers coverage for their entire life without requiring additional medical examinations.
Neither the insurance company (B), the beneficiary (C), nor the government regulatory body (D) has the authority to convert the policyholder's term insurance to permanent insurance; this decision rests solely with the policyholder.