QuestionMay 27, 2025

Which nonforfeiture option has the highest amount of insurance protection? A. Reduced Paid-up B. Conversion C. Extended Term D. Decreasing Term

Which nonforfeiture option has the highest amount of insurance protection? A. Reduced Paid-up B. Conversion C. Extended Term D. Decreasing Term
Which nonforfeiture option has the highest amount of insurance protection?
A. Reduced Paid-up
B. Conversion
C. Extended Term
D. Decreasing Term

Solution
3.3(288 votes)

Answer

C. Extended Term Explanation 1. Identify Nonforfeiture Options Nonforfeiture options include Reduced Paid-up and Extended Term. Conversion and Decreasing Term are not nonforfeiture options. 2. Compare Insurance Protection Extended Term provides the same face amount as the original policy for a limited time, offering the highest immediate insurance protection compared to Reduced Paid-up, which offers a reduced amount of coverage for life.

Explanation

1. Identify Nonforfeiture Options<br /> Nonforfeiture options include Reduced Paid-up and Extended Term. Conversion and Decreasing Term are not nonforfeiture options.<br /><br />2. Compare Insurance Protection<br /> Extended Term provides the same face amount as the original policy for a limited time, offering the highest immediate insurance protection compared to Reduced Paid-up, which offers a reduced amount of coverage for life.
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