Answer: Insurance

Which Situation Accurately Describes A Reduced Paid-Up Nonforfeiture Option?

Which Situation Accurately Describes A Reduced Paid-Up Nonforfeiture Option?

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A Reduced Paid-Up Nonforfeiture Option is a non-forfeiture option that whole life insurance companies offer to their policyholders. This option allows the policyholder to surrender their policy and receive a lump sum payment or cash surrender value in return. The policyholder can then use this money to purchase a new policy at a lower premium …

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How Are Surrender Charges Deducted In A Life Policy With A Rear-End Loaded Provision?

How Are Surrender Charges Deducted In A Life Policy With A Rear-End Loaded Provision?

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A rear-end loaded provision in a life insurance policy allows the policyholder to pay higher premiums initially, and then lower premiums as the policy term progresses. To discourage policyholders from cashing out the policy early, the policy may include a surrender charge. This charge is deducted from the total policy value if the policyholder terminates …

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