This nonforfeiture option uses the cash surrender value to purchase paid-up insurance. The amount of insurance purchased is based upon the insured's current age, sex and rating class. At the time of RPU, all outstanding loans are deducted, and no riders are included on the RPU certificate.
A non-forfeiture option (when the policyowner elects to stop paying premiums) that uses the policy's accumulated cash values to continue the original insurance policy, but for a reduced face amount, with no further premiums required.
A form of insurance available as a non-forfeiture option, providing for continuation of the original insurance plan at a reduced amount.
A non-forfeiture option under which the net cash value of a life insurance policy is used as a net single premium to purchase a smaller amount of fully paid insurance of the same kind and for the same period as the policy being surrendered.
One of the nonforfeiture options contained in most life insurance policies provides that the insured may elect to have the cash surrender value of the policy used to purchase a paid-up policy for a proportionate amount of insurance.
A form of paid-up life insurance available as a non-forfeiture option. It provides insurance payable at the same time and in the same manner as the original policy, but for a reduced amount.
A form of insurance available as a nonforfeiture option. It provides that the cash value of the policy be used as a single premium to purchase paid-up insurance in whatever amount the cash value will provide, which will be less than the original face amount in most cases. See also Nonforfeiture values.
A form of insurance available as a nonforfeiture option. It provides for continuation of the original insurance plan, but for a reduced amount.