Polymorphism refers to the existence of different forms or types of individuals in the same species that differ in structure and function. In coelenterates, polymorphism allows for division of labor within colonies. There are two main polymorphic forms - polyps and medusae. Polyps are sessile with a mouth and tentacles, while medusae are motile and umbrella-shaped. Polymorphism ranges from dimorphic with two types of zooids to polymorphic with many types, and provides advantages like improved protection, feeding, and reproduction that increase colony survival.