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Business Glossary

Business Definition for: extended term insurance

Dictionary of Insurance Terms

extended term insurance

nonforfeiture option that uses the cash value of an ordinary life policy as a single premium to purchase term life insurance in the amount of the original policy. The length of the term policy depends on (1) the size of the cash value and (2) the attained age of the insured.

Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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