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

Extended term insurance is a provision within a permanent life insurance policy that allows the policyholder to maintain coverage even if premiums are discontinued. When the policyholder stops paying premiums, the accumulated cash value of the policy is used to purchase a term insurance policy for the same face amount as the original policy. This means that while the original policy is no longer active, the policyholder retains a death benefit for a specified term, making it a beneficial option for those who find themselves unable to continue premium payments.

In contrast, paid-up insurance refers to a situation where the policy is fully paid and does not require further premiums, but it typically results in a reduced death benefit. Paid-up additions involve the accumulation of additional life insurance coverage using dividends from the policy, and the life income option is a settlement method for benefits after death. These options do not maintain coverage in the same manner as extended term insurance does when premiums are discontinued.