The choices available to an insured as to how the cost value of a life insurance policy will be received - as a lump-sum payment, as extended term insurance, or as reduced paid-up life insurance. These options guarantee that the cash value will not be forfeited by the insured.
Privileges allowed under terms of a life insurance contract after cash values have been created.
The choices available in a life insurance policy to a policyholder if he or she discontinues premium payments on a policy that has accumulated a cash value. The choices are usually to take the cash value in cash, to apply the cash value to purchase "reduced paid-up insurance" or "extended term insurance", or to use the cash value as security for a loan against the policy to pay the premium or premiums due ("automatic premium loan").