Question 2016 of 287 · Texas Life, Accident and Health Agent Exam
Which nonforfeiture option provides a paid-up policy of the same type as the original, with a reduced face amount?
Exactly one answer is correct.
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Correct answer to question 2016
- D: Reduced paid-up insurance
Explanation
Reduced paid-up insurance uses the cash value as a single premium for a smaller permanent policy. Extended term keeps the original face amount for a limited time instead.
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