Definitions for "Nonforfeiture values"
those values of money in a Life insurance policy that the owner does not forfeit even if he/she ceases to pay premiums.
Cash values in a life insurance policy to which the policyowner has a right, even if he or she elects to stop paying premiums. These can be taken under one of three possible nonforfeiture options: (1) surrender for full cash value; (2) use of the cash value to purchase reduced paid-up life insurance; and (3) use of the cash value to purchase extended term insurance in the full face amount of the original policy for as long as the cash value will pay net premiums.
Those benefits in a life insurance policy that by law the policyowner does not forfeit even if he or she discontinues premium payments; usually cash value, loan value, paid-up insurance value and extended term insurance value.