All of the following are true regarding the reduced paid-up insurance nonforfeiture option for life insurance policies, EXCEPT:

Insurance

Are you having trouble answering the question “All of the following are true regarding the reduced paid-up insurance nonforfeiture option for life insurance policies, EXCEPT:”? You don’t have to worry about it anymore. Azanswer team is here with the correct answer to your question.

All of the following are true regarding the reduced paid-up insurance nonforfeiture option for life insurance policies, EXCEPT:

a. With the reduced paid-up insurance option, the policy may be reinstated to the original face amount within the terms of the reinstatement provision.

b. Any outstanding policy loans plus interest would be deducted from the cash surrender value prior to purchasing reduced paid-up insurance.

c. The reduced paid-up insurance option allows the policyowner to purchase paid-up term coverage at a reduced face amount based on the amount of the policy cash value.

d. The cash values act as a single premium to purchase reduced paid-up insurance.

Answer: c. The reduced paid-up insurance option allows the policyowner to purchase paid-up term coverage at a reduced face amount based on the amount of the policy cash value.

You should now have gotten the answer to your question “All of the following are true regarding the reduced paid-up insurance nonforfeiture option for life insurance policies, EXCEPT:”, which was part of Insurance MCQs & Answers. Thanks for choosing us.