Extended Term is not required to be included in life insurance policies.

• A. Extended Term is required to be included
• B. Extended Term must be included
• C. Extended Term is a nonforfeiture option
• D. Extended Term is not required to be included

Answer: (D)

In life insurance, if a policy with cash value lapses, nonforfeiture options let you keep some benefit rather than losing it. Extended Term Insurance is one of these options: the policy’s cash value is used to purchase a term policy for the same death benefit, for as long as the cash value would fund it. But Extended Term is not required to be included in every policy. Insurers aren’t obligated to offer Extended Term specifically; they can offer other nonforfeiture options such as cash surrender value or reduced paid‑up insurance. So the statement that Extended Term is not required to be included reflects that flexibility.