Non-Forfeiture Options are features in life insurance policies that protect you from losing your benefits if you stop paying premiums. These options allow you to choose from alternatives, such as a reduced paid-up policy or an extended term policy of the same size, rather than losing your coverage entirely. Understanding these options is crucial because they provide financial security even if your circumstances change.
With non-forfeiture options, you can maintain some benefits from your policy without ongoing premium payments. This flexibility can be a lifesaver during tough financial times, allowing you to keep your coverage in force without completely losing out on the equity your prior premiums paid for.