extended term insurance option

extended term insurance option definition - business

extended term insurance option

A nonforfeiture option attached to an ordinary life insurance policy in which the net cash value is used as a single premium to purchase paid-up term insurance with coverage equal to the original policy. The length of coverage of the term policy depends on the life expectancy of the insured and the amount of cash value available for the premium.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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