An Illinois whole-life policyowner stops paying premiums but does not surrender the policy or take a loan. Under 215 ILCS 5/229.2, which default nonforfeiture option typically applies if the owner makes no election?

Why this is the answer

Illinois's standard nonforfeiture law, 215 ILCS 5/229.2, requires every cash-value life policy to offer at least three nonforfeiture options when premiums stop: cash surrender, reduced paid-up insurance, and extended-term insurance. If the policyowner makes no election within the grace period, the default in most Illinois traditional whole-life forms is extended-term insurance — the net cash value is applied as a single premium to buy term insurance equal to the original face amount, lasting as long as the value will purchase.