Definitions for "Nonforfeiture options"
This term refers to options available under terms of the contract after cash values have been created.
The choices available to a life insurance policyowner concerning the methods under which the owner can apply the policy's cash value when the policy lapses.
This term refers to privileges allowed under terms of the contract after cash values have been created. Four privileges exist: (1) surrender for full cash value; (2) loans up to full amount of cash value; (3) Paid-up policy for amount of insurance which cash value, as a single premium, will buy at new rates; (4) term insurance for full face amount of original policy for as long a period as cash value will last to pay necessary premiums.