This nonforfeiture option uses the cash surrender value to purchase paid-up insurance. The amount of insurance purchased is based upon the insured's current age, sex and rating class. At the time of RPU, all outstanding loans are deducted, and no riders are included on the RPU certificate.
A non-forfeiture option (when the policyowner elects to stop paying premiums) that uses the policy's accumulated cash values to continue the original insurance policy, but for a reduced face amount, with no further premiums required.
A form of insurance available as a non-forfeiture option, providing for continuation of the original insurance plan at a reduced amount.