What is the provision in a permanent life insurance policy that maintains full coverage for a specified period if premiums are discontinued?

The provision in a permanent life insurance policy that maintains full coverage for a specified period if premiums are discontinued is known as extended term insurance. This option is particularly beneficial for policyholders who can no longer afford to pay premiums but still want to retain life insurance coverage without the necessity of ongoing payments.

In essence, when a policyholder chooses extended term insurance, the cash value accumulated in the permanent life policy is utilized to purchase term insurance for a specified amount that is equivalent to the original policy's face value. This allows the policyholder to maintain life coverage for a predetermined number of years without requiring premium payments during that period.

The other options represent different concepts within life insurance policies. Paid-up insurance refers to a policy where no further premiums are due, but the coverage does not equate to the term extension provided under extended term insurance. Paid-up additions are additional amounts of insurance purchased with dividends, enhancing the policy's overall death benefit and cash value but do not serve the purpose of providing temporary coverage after premium cessation. The life income option pertains to the method of payment of death benefits as an income stream to beneficiaries rather than addressing premium payments or maintaining coverage post-premium payment.