What happens to the contestability and suicide exclusion periods when selecting Reduced Paid Up or Extended Term Insurance?

When a policyholder chooses either Reduced Paid Up or Extended Term Insurance options, the contestability and suicide exclusion periods remain unchanged from those of the original policy. This means that the original terms set forth in the original life insurance contract regarding contestability—how long the insurer can deny a claim based on misrepresentation or omission of information—and the suicide exclusion—typically a period during which the insurer will not pay a death benefit if the insured dies by suicide—continue to apply as they were originally established.

This continuity is important because it maintains the integrity of the original agreement between the policyholder and the insurer. Policyholders are still held accountable for the same terms under their original contract, ensuring that insurers protect themselves against claims that could arise from misrepresentation or suicide within the traditional timeframe.

The other options imply significant changes to the existing terms, which do not occur when opting for these non-forfeiture benefits. Hence, the correct understanding is that these periods are preserved as outlined in the original policy.