One life insurance nonforfeiture option may result in an insured receiving a new face amount of life insurance.

Question

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The nonforfeiture option of "paid-up insurance" allows the policyholder to stop paying premiums and receive a reduced face amount of coverage without having to surrender the policy. This means the insured would receive a new face amount of life insurance that is less than the original amount.

One Life Insurance Nonforfeiture Option May Result in an Insured