Health and Life Insurance

Answer: C - The type of non-forfeiture option that allows the policy owner to use the cash value of a present policy to purchase a single premium insurance policy at attained age rates for a reduced face amount is the reduced paid-up option. Under the reduced paid-up option, the face amount of protection has been determined and remains the same for the contract duration. No further premiums are due on the reduced policy and the new protection is computed at the attained age of the insured.