nonforfeiture option

Definition of "nonforfeiture option"
  1. A choice available to a policyholder to either give up their policy in exchange for its cash value, change it to a policy with a lower coverage amount, or switch it to a term policy with a lesser duration, if they have stopped paying the premiums
How to use "nonforfeiture option" in a sentence
  1. When he lost his job and stopped paying premiums, he applied the nonforfeiture option and converted his policy to one with a smaller face amount.
  2. Choosing a nonforfeiture option allowed a policyholder to access the cash value of the policy after she ceased paying her premiums.
  3. By exercising the nonforfeiture option, the policyholder was able to convert his policy into a short-term policy after he stopped making premium payments.

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