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The nonforfeiture option that provides coverage for the longest period of time is typically the "extended term insurance" option. This option allows the policyholder to use the cash value of a lapsed whole life policy to purchase a term insurance policy with the same face amount, effectively extending coverage for a specified period without requiring further premium payments. The duration of this coverage depends on the cash value accumulated in the original policy.

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2w ago

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Related Questions

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

it has the nighest amount


When a reduced-paid up nonforfeiture option is chosen what happens to the face amount of the policy?

IT IS REDUCED TO THE AMOUNT OF WHAT THE CASH VALUE WOULD BUY AS A SINGLE PREMIUM


What nonforfeiture option has the highest amount of insurance protection?

Reduced paid up


Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policy owner?

The company pays the surrender value and have no further obligations to the policy owner under Cash surrender


What is true about the cash surrender nonforfeitureoption option?

The cash surrender nonforfeiture option allows policyholders of a life insurance policy to receive a cash value equivalent to the accumulated savings of the policy if they choose to terminate it before maturity. This option is particularly beneficial for policyholders who no longer wish to maintain their coverage but want to access the value built up in the policy. It provides a safety net by ensuring that the policyholder does not lose all their investment in the event of cancellation. However, the cash value received may be lower than the total premiums paid, depending on the policy terms.


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The Lessons Learned option


Benefit of choosing Extended Term Insurance as a nonforfeiture option?

It has the highest amount of Insurance Protection; Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy. The duration of the new term coverage lasts for as long a period as the amount of cash value will purchase.


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