When converting a term insurance policy, which of the following statements is true about premium calculations?

The statement regarding premium calculations when converting a term insurance policy being based on the policyholder's current age is accurate. When a term insurance policy is converted to a permanent policy, the premiums for the new policy are typically determined based on the insured's age at the time of conversion. This is because the older a policyholder gets, the higher the risk of mortality, which impacts the rates that insurers establish for life insurance coverage.

In addition, the current age of the policyholder reflects actual mortality risk at that point in time, as opposed to when the initial term policy was issued. This is a key consideration insurers take into account, as policies generally do not use the age at the time of the original term policy purchase for calculating premiums upon conversion.

Other factors, such as health history, may also play a role in determining the premiums, but the cornerstone for conversion calculations is the insured's current age. This means that while options indicating fixed rates, variability due to health history, or comparisons to original term premiums may hold relevance in certain contexts, they do not capture the central principle of age-based premium determination during the conversion process.