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Nonforfeiture Benefit Option


Definition of "Nonforfeiture benefit (option)"

Faye Jones
  RE/MAX REAL ESTATE EXPERTS

Provision that the equity of an insured in a life insurance policy cannot be forfeited. There are four benefits a policyholder can select under the option: cash surrender value, extended term insurance, loan value, and paid-up insurance. If none is elected, a clause in the policy will stipulate the option that automatically goes into effect, usually extended term insurance.



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