Question

Alice finds she no longer is able to pay premiums on her $50,000 Whole Life Policy, but needs that amount of protection for her family. Which non-forfeiture option provides this protection?

a. fixed amountb. reduced paid-upc. paid-up optiond. extended term

Answer 1

correct option is d. extended term

Step-by-step explanation:

given data

pay premiums = $50,000

solution

As extended Term will allow here the amount present cash value of the policies that is buy the single premium term policy

it is the same face amount for the long time period

and here Fixed Amount will be for Settlement Option

and the Paid Up option will be Option Dividend Option

so here correct option is d. extended term