Ezra is the insured owner under a $100,000 permanent life insurance policy. The policy's cash value is $15,000 and Ezra decides to apply those values to purchase a paid-up policy under the contract's nonforfeiture option. At the time of this election, the policy had an outstanding loan balance of $5,000. What is the result? a. The loan balance will be forgiven since Ezra is not surrendering the policy. b. The loan balance will be added to the reduced policy's face value. c. The loan balance will be subtracted from the $15,000 cash value before the paid-up policy is purchased. d. Ezra must continue paying premiums on the reduced paid-up policy, up to $5,000.