extended term insurance

Definition

A non-forfeiture option provided by life insurance companies to whole life insurance policy holders. Allows for the use of cash balances held in whole life insurance policy to pay for term life insurance. Whole life insurance policy holders unable to make premium payments do not lose cash balances and continue to have coverage through term life insurance.

Use this term in a sentence

You may want to try and take on some extended term insurance so that you know you will be fully covered.

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We decided to use the extended term insurance to ensure that we were fully covered and our funds were optimally used.

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John knew that extended term insurance was a very good plan for him to take out and he was eager to have the extra assurance if something happened to him.

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