T2-L2-P8

Exercising the Option

On most contracts, the owner has 90 days to exercise the options. If he or she does not exercise the option within that time, it expires automatically.

Future options are not affected by the failure to exercise an option. However, one cannot recapture any options that have passed. If that were possible, a person with a $100,000 contract could skip all the options until he/she got sick, at age 39, and then go back and recapture the $500,000 that he/she had passed up. The insurance companies will not permit that.

Normally, any riders such as the Waiver of Premium, or Accidental Death - to be discussed later - that were added to the original contract will also be included in the offer that is presented to the policyholder at the six dates from age twenty-five to forty.