Question

Nonforfeiture values guarantee which of the following for the policyowner?

AThat the policy premiums will never increase
BThat the cash value will not be lost
CThat the dividends will be paid annually
DThat the death benefit will be paid in a lump sum
Correct! Because permanent life insurance policies have cash values, there are certain guarantees built into the policy that cannot be forfeited by the policyowner. Nonforfeiture values give the insured the right to the cash value even if the policy lapses or is surrendered.

Answer 1

Nonforfeiture values guarantee that the cash value will not be lost for the policyowner, providing a safeguard for the policyowner to retain the accumulated cash value.

Step-by-step explanation:

Nonforfeiture values guarantee that the cash value will not be lost for the policyowner. These values give the insured the right to the cash value even if the policy lapses or is surrendered. Permanent life insurance policies have cash values, and nonforfeiture values provide a safeguard for the policyowner to retain the accumulated cash value.