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Which non-forfeiture option provides coverage for the longest period of time

User Pinoyyid
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Final answer:

Extended term insurance provides coverage for the longest period of time among non-forfeiture options in insurance.

Step-by-step explanation:

There are three main non-forfeiture options in insurance: cash surrender value, extended term insurance, and reduced paid-up insurance. Among these options, extended term insurance provides coverage for the longest period of time.

Extended term insurance allows the policyholder to use the cash value of their policy to purchase a term insurance policy that has the same death benefit as the original policy. The length of coverage depends on the cash value accumulated in the original policy.

For example, if a policyholder has accumulated $10,000 in cash value and the cost of the term insurance is $1,000 per year, the coverage will last for 10 years.

The Incomplete Question:

Which non-forfeiture option provides coverage for the longest period of time?

a) Paid-up option b) Accumulated at interest c) Reduced paid-up d) Extended term

User Sarmad
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