Nonforfeiture rights guarantee that a policy owner will not lose his or her ____.
A) face value.
B) death benefits for survivors.
C) cash value.
D) premium refunds.
E) premium reductions.

Question

Quizplus · Accepted Answer

Nonforfeiture rights guarantee that a policy owner will not lose his or her cash value. This means that in the event that the policy owner stops paying premiums, the policy will not be terminated and they will still have access to the cash value that has accumulated. This can be used for various purposes, such as borrowing against the cash value or surrendering the policy for its cash value. Nonforfeiture rights do not guarantee face value or death benefits, nor do they necessarily provide premium refunds or reductions.

Nonforfeiture Rights Guarantee That a Policy Owner Will Not Lose