Life · Chapter 5 · Cash Value
Extended Term Option
Definition
Uses cash value to buy term insurance at the SAME face amount for a limited period. Provides the HIGHEST death benefit of the three options.
Exam tip
Extended term is the customary automatic option — but technically the default is whatever the policy specifies, and the owner has 60 days after the missed premium's due date to elect a different option instead (F.S. 627.476).
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms