Final answer:
A non-forfeit provision in a life insurance policy allows policy owners to retain benefits if they stop paying premiums, usually after a cash value has been built up, with the policy typically needing to be in effect for at least 2 to 3 years. Cash-value policies have a death benefit and can accumulate a cash value that the policy owner can use.
Step-by-step explanation:
The non-forfeit provision in a life insurance policy typically refers to a feature that allows policy owners to retain certain benefits or values even if they stop paying premiums. These provisions are commonly associated with cash-value or whole life insurance policies.
The exact time before a non-forfeit provision can be used varies depending on the insurance contract, but commonly it is after the policy has accumulated enough cash value to support the provision. This could take several years, often requiring the policy to be in effect for at least 2 to 3 years, but the specifics are stated within the policy's terms and conditions.
Cash-value life insurance policies not only provide a death benefit but also build cash value over time, which can be used while the policyholder is still alive. The accumulated cash value can act as an account for the policy owner's use, which can help cover medical expenses, or serve as a source of borrowed funds or other financial needs.
Once the cash value is sufficient, policyholders may be able to access it through loans or withdrawals, or use it to pay premiums to keep the policy in effect.