Dorian used his life policy's cash value to purchase an extended term insurance option. When the extended term expires, what happens to the protection?

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

Dorian used his life policy's cash value to purchase an extended term insurance option. When the extended term expires, what happens to the protection?

Explanation:
Extended term insurance is a nonforfeiture option where the policy’s cash value is used to buy term coverage for the same death benefit as the original policy, lasting only as long as the cash value can support it. During that term, the protection is level, but it is temporary. When the extended term period expires, there is no remaining coverage under that option unless a new policy or another form of coverage is obtained. So, the protection ends when the extended term expires.

Extended term insurance is a nonforfeiture option where the policy’s cash value is used to buy term coverage for the same death benefit as the original policy, lasting only as long as the cash value can support it. During that term, the protection is level, but it is temporary. When the extended term period expires, there is no remaining coverage under that option unless a new policy or another form of coverage is obtained. So, the protection ends when the extended term expires.

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