What do nonforfeiture options accomplish? Differentiate between paid-up insurance and extended term insurance
A nonforfeiture option gives a cash value life insurance policyholder some benefits even when a policy is terminated before its maturity. Insurance companies usually offer the two options—paid-up insurance and extended term insurance.
Paid-up insurance: The policyholder receives a policy exactly like the terminated one, but with a lower face value.
Extended term insurance: The insured uses the accumulated cash value to buy a term life policy for the same face value as the lapsed policy.
With paid-up insurance, you have insurance for life. With extended term insurance, you have insurance for the specified term only.
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With decreasing term insurance
A) the premiums remain constant, but the face amount of the policy declines. B) the premiums decline, and the face amount of the policy declines. C) the premiums remain constant, and the face amount of the policy remains constant. D) the premiums decline, and the face amount of the policy increases.
Ethnocentrism is the tendency to assign a wide range of generalized attributes to an individual
Indicate whether the statement is true or false.