Page 28 - Life Assurance

Reduced paid- up Insurance:
Under the reduced paid up insurance

option, The Cash surrender value is applied as a
net single premium to purchase a reduced paid -
up policy. The amount of insurance purchased
depends on the insured’s attained age, the cash
surrender value, and the mortality and interest
assumptions stated in the original contact. The
reduced paid- up policy is the same as the
original policy, but the face amount of insurance
is reduced. If the original policy is participating,
the reduced paid-up policy also pays dividends.

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