Question

What nonforfeiture option allows the policyowner to receive the policy's cash value?

a. None
b. Cash surrender value
c. Extended term
d. Reduced paid-up insurance

Answer 1

The nonforfeiture option that allows the policyowner to receive the policy's cash value is cash surrender value in cash-value (whole) life insurance.

Step-by-step explanation:

The nonforfeiture option that allows the policyowner to receive the policy's cash value is cash surrender value.

Cash-value (whole) life insurance not only provides a death benefit but also accumulates a cash value over time. This cash value can be accessed by the policyowner as a form of savings or for other financial needs.

For example, if a policyowner decides to surrender their cash-value life insurance policy, they will receive the cash surrender value, which is the accumulated amount that has been built up in the policy.