Which option allows the policyowner to temporarily extend the policy benefits?

The option that allows the policyowner to temporarily extend the policy benefits is Extended Term Insurance. This feature is typically part of a whole life insurance policy's non-forfeiture options. When a policy lapses due to non-payment of premiums, the policyowner can choose Extended Term Insurance to maintain some level of coverage without having to pay premiums.

In this arrangement, the policy's cash value is used to purchase a term insurance policy for the same face amount as the original policy, ensuring continued protection for a specific period. This gives policyowners peace of mind, knowing that their beneficiaries still have coverage for a certain time, even if they can’t continue making regular premium payments.

Other options such as Reduced Paid-Up Insurance and Cash Surrender Value don’t provide a temporary extension of coverage but serve different purposes: Reduced Paid-Up Insurance allows the policy to stay in force with a reduced death benefit on a paid-up basis, while Cash Surrender Value pertains to the amount the policyowner receives if they choose to voluntarily terminate the policy. A Survivorship Policy is designed to cover two people and only pays out after both have passed away, making it unrelated to the temporary extension of benefits.