Definitions for "Nonforfeiture Benefit"
The provision in some life insurance contracts which specifies the benefits that cannot be forfeited even if premium payments are not made. These types of benefits may include the paid-up insurance value, the loan value, or the cash surrender value.
A policy feature that provides for some return on premiums paid or reduced benefits, even if the policyholder quits paying the premium after a minimum period of time. This feature makes the insurance purchase more of an investment than true insurance, and raises the basic policy price.
A reduced benefit that covers you if you cancel your policy or let it lapse.
a cost item carefully calculated by the carrier's actuary