A whole life policy guarantees that a policyholder who decides to cancel the policy can either take cash for the surrender (cash) value or continue the policy in force as extended term insurance and paid-up insurance.What are these provisions are called?

Question

Quizplus · Accepted Answer

Nonforfeiture options are provisions in a life insurance policy that provide the policyholder with choices on what can be done with the policy's cash value if the policy is cancelled or lapses. These options typically include taking the cash surrender value, converting the policy into extended term insurance, or converting it into a paid-up policy for a reduced amount.

A Whole Life Policy Guarantees That a Policyholder Who Decides