Question

Which of these Nonforfeiture Options continue a build-up of cash value?a. Waiver of Premiumb. Extended Termc. Reduced Paid-Upd. Cash Surrender

Answer 1

Reduced Paid-Up

Step-by-step explanation:

Nonforfeiture provision in insurance allows for a partial or full refund of premiums paid in case of non payment by the client over a period of time.

Refunds are made before the policy expires.

Reduced Paid-Up option allows the original death benefit to remain without future payments of premiums.

So when there is non payment of premiums over time the original amount going to the beneficiary remains and increases in value