What is the name of the provision in a permanent life insurance policy that allows premiums to be discontinued while maintaining full insurance for a period?

The provision in a permanent life insurance policy that allows premiums to be discontinued while maintaining full insurance for a specified period is called extended term insurance. This option works by converting the accumulated cash value of the policy into a term insurance policy for a certain amount of time, allowing the policyholder to retain their death benefit even if they stop paying premiums. This feature is particularly beneficial for those who may find themselves in a position where they can no longer afford premiums but still wish to maintain their coverage for a limited time.

In contrast, reduced paid-up insurance involves converting the policy into a paid-up status with a lower face amount. While this feature allows the policyholder to cease premium payments, it reduces the death benefit instead of maintaining the full coverage level for a limited period. This distinction is important for understanding the differences in how these options impact the policyholder's coverage and their financial planning strategies. Whole life conversion and level term insurance do not pertain to the scenario presented in the question, further solidifying extended term insurance as the correct choice.