If D owns a whole life policy and does not pay premiums for an extended period, which Nonforfeiture Option will the insurer likely proceed with?

In the scenario where D owns a whole life policy and fails to pay premiums for an extended period, the insurer is likely to proceed with the Extended Term option as the appropriate Nonforfeiture Option.

Whole life insurance policies include built-in guarantees that protect the policyholder from losing all benefits due to non-payment of premiums. When premium payments are not made, the policy accumulates a cash value over time because part of the premium is designated for savings. The Extended Term option allows the policyholder to use this accumulated cash value to purchase term insurance for a specified period, rather than losing the entire policy.

This approach maintains some level of life insurance protection and gives the policyholder additional time to potentially reinstate the original policy or make premium payments in the future. It is often more beneficial for the policyholder than simply allowing the policy to lapse or cashing it in, as those options would lead to a complete loss of coverage or cash value without preserving any insurance benefit.

The Extended Term option is widely regarded as a favorable Nonforfeiture Option as it provides continued life insurance protection for a set term, ensuring that the insured isn't left without any coverage during the transition period.