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.