11.1b

Question 1

The reduced paid-up whole life policy option allows a policyowner to ______ and reinvest the policy’s cash value by purchasing a single-payment whole life policy at a lesser face amount than the original, forfeited policy.

Answer 1

cancel his or her current whole life policy

Question 2

As an example of the reduced paid up option, a policyowner surrenders his or her $100,000 whole life policy and reinvests its accumulated cash value to purchase a single-premium $60,000 ______ (paid 100% by the cash value of the forfeited policy).

Answer 2

whole life policy

Question 3

The extended term option is similar to the reduced paid-up option, except the policyowner uses the policy’s cash value ______ with the same face amount as the surrendered whole life policy at a lesser term length, based on the amount of cash value available at surrender.

Answer 3

to buy a term life policy

Question 4

As an example of the extended term option, a policyowner surrenders his or her $100,000 whole life policy and reinvests its accumulated cash value to purchase a single-premium $100,000 term life policy, with a term length as long as can be purchased by the ______.

Answer 4

surrendered policy’s cash value