What provision in a permanent life insurance policy maintains full coverage for a specified period if premiums are discontinued?

The provision that maintains full coverage for a specified period if premiums are discontinued is known as the extended term option. This option allows the policyholder to use the accumulated cash value of the permanent life insurance policy to purchase a term insurance policy for the same face amount as the original policy, thus providing temporary coverage for a set time without the need to pay ongoing premiums.

When premiums are discontinued, the policy does not lapse immediately. Instead, the cash value can be converted into a term policy, which ensures that the insured is still protected for a particular duration, based on the available cash value. This feature is particularly beneficial in situations where cash flow is a challenge, allowing the policyholder to maintain their life insurance coverage without ongoing premium payments for a limited time.

The paid-up insurance additions and guaranteed insurability option, while important features of permanent life policies, serve different purposes and do not specifically address what happens when premiums stop—especially in relation to maintaining full coverage temporarily.