All of the following are Nonforfeiture Options EXCEPT: A. Reduced Paid-Up Option B. Extended Term Option C. Cash Surrender Option D. Automatic Premium Loan Option

Understand the Problem

The question is asking to identify which of the given options is NOT a nonforfeiture option in the context of an insurance policy.

More Information

Nonforfeiture options are choices a policyholder has for using the cash value of a life insurance policy if they stop paying premiums. The common options include: Reduced Paid-Up Option, Extended Term Option, and Cash Surrender Option. The Automatic Premium Loan Option is not considered a nonforfeiture option.

Tips

A common mistake is to confuse policy loans with nonforfeiture options. Policy loans are a feature of many life insurance policies, but they're not the same as nonforfeiture options, which come into play when a policy lapses due to non-payment.

Sources

• What Are Life Insurance Nonforfeiture Options? - westernsouthern.com
• Solved All of the following are nonforfeiture options found | Chegg.com - chegg.com
• What Is a Nonforfeiture Clause? 4 Payout Options Explained - investopedia.com