Which is the Nonforfeiture option in life insurance policy?

A non-forfeiture option. (or clause) is a provision included in certain life insurance policies stipulating that the policyholder will not forfeit the value of the policy if the policy lapses after a defined period due to missed premium payments.

What are examples of Nonforfeiture options?

Life insurance policyholders can select one of four nonforfeiture benefit options: the cash surrender value, extended term insurance, loan value, and paid-up insurance.

What are the 3 Nonforfeiture options?

There are three nonforfeiture options: (1) cash surrender; (2) reduced paid- up insurance; and (3) extended term insurance. If a policyowner chooses, he/she may request a cash payment of the cash values when the policy is surrendered.

What is Nonforfeiture values mean in insurance?

A nonforfeiture clause is an element included in standard life insurance and long-term care insurance. It stipulates that the policyholder will receive a partial or full refund of premiums paid if the policy lapses after a defined period due to missed premium payments.

Which Nonforfeiture option is the highest amount of insurance protection?

Which nonforfeiture option has the highest amount of insurance protection? The Extended Term nonforfeiture option has the same face amount as the original policy, but for a shorter period of time.

What is the automatic Nonforfeiture option?

For a specific life insurance policy, a specified nonforfeiture benefit that automatically becomes effective when a renewal premium is not paid by the end of the grace period and the policy owner has not elected another nonforfeiture option.

Which Nonforfeiture option is the automatic option?

Which nonforfeiture option is the “automatic” option? If the policyowner cannot be reached, premium payments have ceased, and the policy’s cash value is eliminated, the insurer will automatically use the extended term option.

What is extended term Nonforfeiture option?

Extended term insurance is a nonforfeiture option on a whole life policy that uses the policy’s cash value to buy term insurance for the current whole life death benefit for a specified period of time.