Twenty years ago, Jason purchased a universal life insurance policy that has a face value of $1MM. Jason has decided that given his tight cash flow, he doesn’t want to pay the premiums anymore. However, he still wants to maintain some amount of the coverage of the policy. Which of the following non-forfeiture options are available to him if he decides to stop paying the premiums?
1. If the policy has a cash value, the insurance company could provide him with a policy loan to continue paying the premiums
2. Withdraw the full amount of the cash value in the policy and cancel the policy
3. He could exchange the cash value for a fully-paid up policy with a smaller death benefit
4. He could take out a policy loan equal to the cash value of the policy