Nonforfeiture Options include:

Nonforfeiture Options include:

• A. Cash Surrender Value
• B. Death Benefit
• C. Policy Loan
• D. Beneficiary Change

Answer: (A)

Nonforfeiture options are benefits you can receive if you stop paying premiums and surrender the policy, ensuring you don’t lose all value built up in the contract. The cash surrender value is the amount the insurer pays you when you surrender the policy, representing the accumulated cash value you’ve built up minus any surrender charges. It’s the living benefit that lets you recover some of the policy’s value without keeping it in force. The death benefit is what pays out to beneficiaries when the insured dies, not a living option you choose when surrendering. A policy loan is a loan against the policy’s cash value, not a formal nonforfeiture option you select when you surrender. Beneficiary change simply alters who would receive the death benefit, which isn’t a nonforfeiture option either. So, the cash surrender value is the nonforfeiture option among the choices.

Nonforfeiture options are benefits you can receive if you stop paying premiums and surrender the policy, ensuring you don’t lose all value built up in the contract. The cash surrender value is the amount the insurer pays you when you surrender the policy, representing the accumulated cash value you’ve built up minus any surrender charges. It’s the living benefit that lets you recover some of the policy’s value without keeping it in force.

The death benefit is what pays out to beneficiaries when the insured dies, not a living option you choose when surrendering. A policy loan is a loan against the policy’s cash value, not a formal nonforfeiture option you select when you surrender. Beneficiary change simply alters who would receive the death benefit, which isn’t a nonforfeiture option either.

So, the cash surrender value is the nonforfeiture option among the choices.