Non-Forfeiture Options
Options available to the policyholder if they decide to stop paying premiums on a permanent life insurance policy that builds and maintains cash value over time. These options include cash surrender, reduced paid-up insurance, and extended term insurance.
Detailed Explanation
These options prevent the policyholder from losing all the accumulated value in the policy.
Practical Example
Robert decided to stop paying premiums on his whole life insurance policy. He chose the reduced paid-up insurance option, which used the accumulated cash value to purchase a smaller amount of fully paid-up life insurance.
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