Why might premiums of a convertible term assurance later increase for Carole?

The correct answer highlights a crucial aspect of insurance products, especially convertible term assurance. When Carole considers converting her term policy to a whole life policy, her health status at the time of conversion plays a significant role in determining her premiums.

Health conditions can change over time, and if Carole's health deteriorates before she converts her policy, the insurer may assess her as a higher risk. Typically, standard underwriting practices evaluate an individual’s health status at the time of policy conversion. If her health has declined, this may lead to an increase in premiums compared to her original policy, which was priced based on healthier conditions at the time of the initial purchase.

Other options provided may suggest valid scenarios but do not accurately capture the primary reason for potential premium increase due to personal circumstances. For instance, while company policy or terms of conversion may change, they are secondary considerations compared to the direct impact that Carole's existing health has on her risk profile at the point of conversion. Thus, the most straightforward and relevant factor influencing the potential increase in her premiums is indeed her health conditions at the time of conversion.