What is a key characteristic of the extended term insurance option?

The extended term insurance option allows a policyholder to convert their whole life insurance policy into a term life policy without needing to provide evidence of insurability. A key characteristic of this option is that it provides term coverage that is equal to the face amount of the original policy. This means that when the whole life policy's cash value is used to purchase the extended term insurance, the coverage amount remains the same as that of the original policy.

This feature is significant because it enables the policyholder to maintain substantial coverage for a specified term while utilizing the cash value accumulated in the whole life policy. It is a convenient option for those who may not need permanent insurance anymore but still want to ensure their beneficiaries are protected for a defined period.