What option allows an insured to add periodic increases to their policy's face amount without evidence of insurability?

The correct choice is the option that allows the insured to add periodic increases to their policy's face amount without needing to provide evidence of insurability. This is known as the guaranteed insurability option.

This particular feature is significant because it ensures that the policyholder can increase their life insurance coverage as their needs change—perhaps due to life events like marriage or the birth of a child—without undergoing the application process again, which could include medical exams or health questionnaires that might lead to denial based on health status. The guaranteed insurability option essentially provides peace of mind that as one’s financial responsibilities grow, their life insurance protection can grow accordingly without additional barriers or costs associated with proving insurability at the time of change.

The other options discussed do not provide the same benefit. For instance, a guaranteed renewable option allows the policyholder to renew their policy at the end of its term, but it does not specifically address increasing coverage amounts. A conversion option typically allows a term policy to be converted into a permanent policy, which serves a different purpose. Lastly, a non-forfeiture option pertains to the benefits the policyholder receives if they stop paying premiums, rather than enabling increases in coverage. Each of these serves important functions in life