Final answer:
The face value of the term insurance policy that Clarice will receive upon exchanging her whole life policy for an extended term policy is $100,000. This allows her to maintain the same level of death benefit as her original policy, even though she is no longer paying premiums.
Step-by-step explanation:
In the context of cash-value (whole) life insurance, the nonforfeiture provision offers a safety net for policyholders who may no longer be able to pay their premiums. One of the options within this provision is the extended term insurance option. When Clarice decides to stop paying the premiums on her $100,000 whole life policy and chooses the extended term insurance, the face value of her new term insurance policy will be the same as her original policy.
Therefore, the correct answer is (d) $100,000. This means Clarice's new term insurance policy will continue to have a death benefit equal to that of the whole life policy she initially purchased. The extended term insurance allows her coverage to persist for a term dictated by the policy's cash value, with the face value remaining at $100,000 until the term expires or a claim is made.