Nonforfeiture
Contractual options or minimum values that may remain when a cash-value policy is stopped or surrendered, subject to law and policy terms.
Why it matters
They can preserve some value or reduced coverage instead of losing everything after premiums stop.
Where you may see it
Nonforfeiture table, policy options, lapse notice, annual statement, and surrender form.
What to verify
Cash surrender value, reduced paid-up amount, extended term option, loans, deadlines, and tax consequences.
Do not confuse it with
Grace period, which is the time to make a late premium before lapse.
Read Nonforfeiture in context
Start with the exact sentence where the term appears, then read the definition, schedule, and any referenced rider together. The practical concern is this: They can preserve some value or reduced coverage instead of losing everything after premiums stop. Locate the relevant records—nonforfeiture table, policy options, lapse notice, annual statement, and surrender form.—and compare them with the issued contract rather than a sales summary.
Before signing, changing coverage, or making a claim decision, record the points that control the result: Cash surrender value, reduced paid-up amount, extended term option, loans, deadlines, and tax consequences. If another policy uses similar wording, do not assume it has the same effect.
Keep the dated page or form with your notes. If the definition changes the benefit, premium, ownership rights, or a deadline, ask the issuing insurer for a written explanation tied to the policy number.
Reliable places to check
- Your issued policy and application copy.
- NAIC consumer life insurance resources.
- Your state insurance department for licensing and consumer help.