Final answer:
The true statement about life insurance contract options is that all life insurance policies provide nonforfeiture options, but not all provide dividend options, which are specific to participating policies.
Step-by-step explanation:
The true statement with regard to the options available in life insurance contracts is that not all life insurance policies provide dividend options. Dividend options are typically found in participating policies where the insurance company shares excess profits with policyholders in the form of dividends. However, this is not a feature of all life insurance policies.
On the other hand, all life insurance policies do provide nonforfeiture options. Nonforfeiture options are provisions within a life insurance policy that provide the policyholder with certain rights if they default on their premium payments. These options ensure that the policyholder does not entirely lose the benefits of their policy. Examples of nonforfeiture options can include a cash surrender value, reduced paid-up insurance, or extended term insurance.
Cash-value (whole) life insurance does indeed have a death benefit and also has a cash value, which represents the savings component of the policy that accumulates over time and can be used by the policyholder for various purposes.