QuestionJune 4, 2025

Betty has owned a continuous premium whole life policy for many years and has accumulated a sizable amount of cash value. In the event she decides to discontinue payments to the policy.which options are NOT available to her under the non-forfeiture provision? A) The current face amount may be kept in force for a limited amount of time. B) A smaller whole life policy may be purchased with her cash value. C) The current face amount may be kept indefinitely. D) The policy can be cancelled and the net cash value is surrendered to the policyowner.

Betty has owned a continuous premium whole life policy for many years and has accumulated a sizable amount of cash value. In the event she decides to discontinue payments to the policy.which options are NOT available to her under the non-forfeiture provision? A) The current face amount may be kept in force for a limited amount of time. B) A smaller whole life policy may be purchased with her cash value. C) The current face amount may be kept indefinitely. D) The policy can be cancelled and the net cash value is surrendered to the policyowner.
Betty has owned a continuous premium whole life policy for many years and has accumulated a sizable amount of cash value. In the event
she decides to discontinue
payments to the policy.which options are NOT available to her under the non-forfeiture provision?
A) The current face amount may be kept in force for a limited amount of time.
B) A smaller whole life policy may be purchased with her cash value.
C) The current face amount may be kept indefinitely.
D) The policy can be cancelled and the net cash value is surrendered to the policyowner.

Solution
4.2(286 votes)

Answer

C) The current face amount may be kept indefinitely. Explanation 1. Identify Non-Forfeiture Options Non-forfeiture options typically include extended term insurance (A), reduced paid-up insurance (B), and cash surrender value (D). 2. Determine the Incorrect Option Option C, keeping the current face amount indefinitely without further payments, is not a standard non-forfeiture option.

Explanation

1. Identify Non-Forfeiture Options<br /> Non-forfeiture options typically include extended term insurance (A), reduced paid-up insurance (B), and cash surrender value (D).<br /><br />2. Determine the Incorrect Option<br /> Option C, keeping the current face amount indefinitely without further payments, is not a standard non-forfeiture option.
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