What Is A Nonforfeiture Option In Life Insurance?

  1. 1305 POINTS
    Neil Steinman
    Owner, Orange County Health & Life Insurance,
    A nonforfeiture option basically states that if you stop paying your premium beyond the grace period, you will not lose any equity you might have in the policy. In the old days, before nonforfeiture options, if you stopped paying your premiums, you would lose everything, including your own equity. Fortunately, nonforfeiture options were developed for this reason.
    Answered on July 14, 2013
    flag this answer
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    A nonforfeiture clause in life insurance will make allowances if the policy lapses or is terminated. These include the option for some or all of the premiums to be returned, the policy to be changed to a paid up policy, or the cash value to be paid to the policy owner.
    Answered on July 20, 2013
    flag this answer
    3. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>