Which nonforfeiture option continues the policy's original coverage for a limited period?

The extended term nonforfeiture option allows the policyholder to maintain the insurance coverage for a specified period without paying further premiums. When a policyholder chooses this option, the cash value accumulated in the policy is used to purchase a term insurance policy for the same face amount as the original policy. This term policy is typically valid for a certain number of years, which corresponds to the value of the original policy.

This option is designed to provide continued protection even after the original policy has lapsed due to non-payment of premiums, making it an excellent choice for individuals who wish to keep their coverage intact for a limited time despite financial difficulties. In contrast, options like reduced paid-up or cash surrender do not focus on preserving the original coverage for an extended period; instead, they provide reduced benefits or a cash payout. The automatic premium loan is a feature that allows premiums to be automatically borrowed against the cash value if they are not paid, but it does not create a new coverage term.