What Is Extended Term Life Insurance? 
Extended term life insurance is coverage that is provided by the cash value in a life insurance policy . The policy is usually a whole life policy , but can originate from other cash value plans . Here is an example : You have a $ 100,000 whole life policy that has built up some cash value . You stop paying premiums and your non-forfeiture option is extended term . The cash value is used to provide you with $ 100,000 of coverage for a specified term based on the cash value . This is referred to as extended term . Some insurance companies have extended term as the default non-forfeiture option for cash value plan whole life plans when you miss a premium others have automatic premium loan . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . 