Which of the following is a nonforfeiture option in life insurance?

The nonforfeiture options in life insurance are provisions that provide policyholders with options to access the value of their policy if they decide to stop paying premiums. Among these, a reduced paid-up policy is a common nonforfeiture option.

When a policyholder chooses the reduced paid-up option, they can stop paying premiums, and instead, the insurer will convert their policy into a paid-up policy for a reduced amount of coverage. This means that the policyholder retains some level of life insurance protection without having to continue paying premiums. This approach allows individuals to retain some value from their policy instead of losing everything if they need to stop payments.

In contrast, cash surrender value is indeed a nonforfeiture option, but it pertains to cashing out the full cash value of the policy rather than maintaining any insurance coverage. The accidental death benefit and rider options are additional coverages or modifications to a policy and do not represent nonforfeiture options, as they do not provide alternatives related to the policy’s cash value or coverage upon non-payment of premiums. The correct choice highlights the ability to maintain an insurance benefit after ceasing premium payments, emphasizing the importance of understanding nonforfeiture options in life insurance.