How are the benefits of a reduced paid-up insurance policy similar to those of the original whole life policy?

A reduced paid-up insurance policy is a form of whole life insurance that allows the policyholder to stop making premium payments while still providing a death benefit. This type of policy continues to accumulate cash value and provides lifetime coverage, similar to the original whole life policy.

The key similarity lies in the features that both policies share, such as the guaranteed death benefit and the cash surrender value. The original whole life policy typically offers these benefits as part of its structure, ensuring that the policyholder has both a form of savings and lifelong protection.

On the other hand, options that mention periodic premium payments do not apply to a reduced paid-up situation since no further payments are required. Higher face amounts are not a characteristic shared by both policies because reduced paid-up insurance usually has a lower face amount compared to the original policy. Lastly, while both types of policies may have a return on investment in the form of cash values, not every type guarantees a specific return, making this option less applicable.