Final answer:
The non-forfeiture option indicating no more insurance coverage is the cash surrender option, A. Cash surrender, where the policy is canceled, and the policyholder gets the accumulated cash value.
Step-by-step explanation:
The non-forfeiture option that indicates that insurance coverage no longer exists is A. Cash surrender. When a policyholder selects the cash surrender option, they are essentially canceling their life insurance policy. Upon doing so, they receive the policy's cash value, which is the accumulated amount saved within the policy. This account can be used by the policyholder for any purpose, but it also means that the death benefit is forfeited, and no further insurance coverage is provided.
With the extended term insurance and reduced paid-up insurance options, the policyholder still maintains some level of insurance coverage. Extended term insurance allows the policyholder to apply the cash value to purchase term insurance for the same death benefit, while reduced paid-up insurance lets the policyholder buy a smaller, paid-up policy without having to pay any additional premiums. Paid-up additions are additional amounts of whole life insurance purchased using the policy's dividends, which increase the death benefit and cash value of the original policy without canceling it.