Primerica Pre-licensing Course Practice Exam

Extended Term is a non-forfeiture option that lets you turn a permanent policy into term insurance while keeping the same death benefit. It uses the policy’s cash surrender value to purchase a level-term policy for the same face amount, but only for as long as that cash value can support the required premiums. So you retain the same protection amount, but for a shorter period, and no further premiums are needed once the cash value is exhausted. If the insured dies during that term, the payoff matches the original face amount; if the term ends first, the coverage ends. This is exactly how the provision described in the question works. The other options relate to cash value accumulation, future insurability, or living benefits, not to converting permanent coverage into term for the same face amount.