1. Olive, a 54-year-old widow in excellent health, owns a $250,000 20-year renewable and convertible (R&C) insurance policy. Olive originally bought the policy to protect the welfare of her children while they were young. The children are now self-sufficient and no longer require this protection. Next month, Olive will have an opportunity to renew the policy for another 20-year term. Olive would like to leave a bequest to her church, and she has targeted the death benefit of her insurance policy for this purpose. What is the LEAST EXPENSIVE method that will ensure Olive can achieve her goal?

1. Exercise the conversion feature and convert the term policy to a whole life policy.
2. Exercise the renewal feature for another 20 years of term coverage.
3. Do not exercise the renewal feature and buy a new term-100 policy.
4. Do not exercise the renewal feature and buy a new 20-year term policy without the conversion and renewal features to reduce premium costs.

Explain your answer: