Final answer:
Paid-up additions provide the greatest amount of life insurance protection by using the cash value in the policy to purchase additional coverage without further premiums. Option A is correct.
Step-by-step explanation:
The non-forfeiture option that provides the greatest amount of life insurance protection is paid-up additions. When you choose this option, the cash value of your policy is used to purchase additional paid-up life insurance coverage without any further premiums. This means that you will have a larger death benefit and more life insurance protection compared to the other options.
On the other hand, surrender for cash allows you to terminate your policy and receive the cash value. However, this option does not provide any life insurance protection.
Extended term insurance uses the cash value to convert the policy into a term insurance policy with the same death benefit but for a limited time. Reduced paid-up insurance converts the policy into a smaller permanent policy with a reduced death benefit. Both of these options provide some life insurance protection but not as much as paid-up additions.