Which nonforfeiture option typically provides coverage for the longest time period?

The option that typically provides coverage for the longest time period is reduced paid-up insurance. When a policyholder chooses the reduced paid-up option, their policy's cash value is used to purchase a single premium, paid-up policy for a reduced death benefit. This means that the policy remains in force for a longer time than if the cash surrender value were taken or if extended term insurance were chosen.

This is primarily because the reduced paid-up policy does not require further premiums to keep it active. As long as the insured is alive, this policy will provide coverage until the insured's death, making it advantageous for those seeking longevity in their life insurance coverage without further financial commitment.

In contrast, the extended term option allows the policy's cash value to purchase a term policy for a specified period. While this option does provide coverage, it is for a limited term and will eventually expire when that term ends. Paid-up additions involve using dividends to buy additional insurance, which adds benefits but doesn't extend the overall policy length in the same way. Choosing cash surrender value means the policyholder gives up their coverage entirely in exchange for a lump sum, thus terminating any coverage completely. Accordingly, reduced paid-up insurance offers a lasting protection that can often extend through the insured's lifetime,