Life Insurance - Nonforfeiture Options

Question 1

Cash Surrender value

Answer 1

Insured receives the accumulated cash value when terminating the life insurance policy. The cash surrender value is the cash less surrender charges

Question 2

Reduced Paid-up Insurance

Answer 2

Insured receives the cash value in the form of a paid-up policy with a smaller face amount.

Question 3

Extended Term Insurance

Answer 3

The insured receives the cash value in the form of a paid-up term policy for a specified duration, with the same face amount as the original policy.