What is the extended term Nonforfeiture option?

Choosing the nonforfeiture extended term option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole-life policy. The policy is calculated from the insured’s attained age.

What are the 3 Nonforfeiture options?

There are three nonforfeiture options: (1) cash surrender; (2) reduced paid- up insurance; and (3) extended term insurance. If a policyowner chooses, he/she may request a cash payment of the cash values when the policy is surrendered.

What is the extended term insurance option?

Extended term insurance is a nonforfeiture option on a whole life policy that uses the policy’s cash value to buy term insurance for the current whole life death benefit for a specified period of time.

What is Nonforfeiture option?

A non-forfeiture option. (or clause) is a provision included in certain life insurance policies stipulating that the policyholder will not forfeit the value of the policy if the policy lapses after a defined period due to missed premium payments.

What is an extended term life policy?

Extended term insurance is a type of life insurance in which a policyholder can continue receiving coverage without paying premiums.

What is the benefit of choosing extended term as a Nonforfeiture option quizlet?

What is the benefit of choosing extended term as a nonforfeiture option? It has the highest amount of insurance protection: has the same face amount as the original policy, but for a shorter period of time.

What is the default Nonforfeiture option?

A nonforfeiture clause is an element included in standard life insurance and long-term care insurance. It stipulates that the policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments.

What is an advantage of a Nonforfeiture extended term option?

Choosing the nonforfeiture extended term option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole-life policy.