Which options are included in Nonforfeiture Options?

Nonforfeiture options are specific provisions in life insurance policies that ensure the policyholder maintains some level of benefits even if they stop paying premiums. The correct answer highlights guaranteed benefits that cannot be forfeited, which is the essence of nonforfeiture options.

These options are designed to protect the policyholder’s interest by providing certain guaranteed benefits when the policy is surrendered, lapses, or when premiums are no longer being paid. For example, if a policyholder stops paying premiums, they can still receive the cash value accumulated in the policy or use it towards reduced paid-up insurance.

The other options do not accurately define nonforfeiture options. Nonforfeiture options cannot be canceled by the policyowner; rather, they are rights that are built into the policy to provide security. They also do not require proof of insurability, as they are benefits guaranteed to the policyholder regardless of their health status at the time of cessation of premium payments. Lastly, nonforfeiture options do not involve choices that allow for increased premiums; instead, they are focused on ensuring that the policyholder benefits from the policy even without ongoing premium payments.