A policyowner stops paying premiums on a whole life policy with an accidental death benefit and exchanges the policy for extended term insurance. All of the following statements pertaining to this situation are correct EXCEPT:

A policyowner stops paying premiums on a whole life policy with an accidental death benefit and exchanges the policy for extended term insurance. All of the following statements pertaining to this situation are correct EXCEPT:


A) the term policy has no cash value.

B) the policyowner will have continued protection for a limited period of time.

C) there will be no accidental death benefit with the new policy.

D) the term policy will have a reduced face value.



Answer: D) the term policy will have a reduced face value.

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