All of the following are true regarding the reduced paid-up insurance nonforfeiture option for life insurance policies, EXCEPT:
O With the reduced paid-up insurance option, the policy may be reinstated to the original face amount within the terms of the reinstatement provision.
O Any outstanding policy loans plus interest would be deducted from the cash surrender value prior to purchasing reduced paid-up insurance.
O The cash values act as a single premium to purchase reduced paid-up insurance.
O The reduced paid-up insurance option allows the policyowner to purchase paid-up term coverage at a reduced face amount based on the amount of the policy cash value.