When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

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When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

a) The same as the original policy minus the cash value.
b) Equal to the original policy for as long a period of time that the cash values will purchase.
c) In lesser amounts for the remaining policy term of age 100.
d) Equal to the cash value surrendered from the policy.

Answer: b) Equal to the original policy for as long a period of time that the cash values will purchase.

Life Insurance

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