QuestionAugust 13, 2025

Question 11 of 90 When a whole life policy is surrendered for its nonforfeiture value , what is the automatic option? A. Cash surrender value B. Reduced paid up C C. Paid up additions D. Extended term

Question 11 of 90 When a whole life policy is surrendered for its nonforfeiture value , what is the automatic option? A. Cash surrender value B. Reduced paid up C C. Paid up additions D. Extended term
Question 11 of 90
When a whole life policy is surrendered for its nonforfeiture value , what is the
automatic option?
A. Cash surrender value
B. Reduced paid up
C C. Paid up additions
D. Extended term

Solution
4.5(249 votes)

Answer

D. Extended term Explanation 1. Identify the automatic nonforfeiture option The automatic nonforfeiture option for a whole life policy when surrendered is typically the **extended term** insurance. This means the cash value is used to purchase term insurance for the same face amount as the original policy.

Explanation

1. Identify the automatic nonforfeiture option<br /> The automatic nonforfeiture option for a whole life policy when surrendered is typically the **extended term** insurance. This means the cash value is used to purchase term insurance for the same face amount as the original policy.
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