Nonforfeiture clause

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Nonforfeiture Clause

A clause in some insurance policies entitling a policyholder to receive the benefit, or a portion of it, for a short period of time after allowing the policy to lapse. That is, if the policyholder does not pay the premium as agreed, he/she is still entitled under a nonforfeiture clause to the benefit should the insured event occur within a certain, brief period of time. Alternatively, a nonforfeiture clause may entitle a policyholder to a partial refund of the premiums paid.

Nonforfeiture clause.

If there is a nonforfeiture clause in your insurance policy contract, and you have let the policy lapse because you haven't paid a premium that's due, you may qualify for the benefit named in the contract for a limited time, for a smaller benefit, or for a partial refund of your premium.

However, the added protection of adding a nonforfeiture clause generally increases the premium for the policy.

References in periodicals archive ?
Of the rest, 8% have taken reduced benefits and only 5% have chosen the non-forfeiture option.
There is also information on data not traditionally covered in most experience studies, including substandard, term and group conversions, and non-forfeiture options.
In last month's column, we explored how whole life can be funded in a way that could guarantee a paid-up policy either contractually or through the use of a non-forfeiture option.
In particular, one fundamental aspect of traditional life insurance that cannot be offered by a family takaful plan is the non-forfeiture benefit, i.
Inflation of Daily Benefit Compound lifetime: 5%; Simple lifetime: 5% Benefit Periods 2 years, 3 years, 5 years and 10 years Admission / benefit triggers Chronically ill (expect to need services for at least 90 days), cognitive impairment, unable to perform 2 out of 6 ADLs Additional type of benefits Adult day care, alternate plan/ provided for base policy: informal care, assisted living, bed reservation, durable medical equipment, home modification, homemaker services, hospice care, respite care Optional Riders Non-forfeiture Average application processing 22 days time The State Life Insurance Company (800) 275-5101 www.
The department added this regulation to "require the use of the 1980 CSO Mortality Table for determining the minimum standard of valuation of reserves and the minimum standard of non-forfeiture values for preneed insurance products.
1 This is the Guaranteed Minimum Value whereby the purchase payment accumulates at the non-forfeiture rate set at the time of annuity purchase and will never be less than 1.
Another way to utilize the Paid-Up Additions Rider could be to guarantee a paid-up policy using the contract's non-forfeiture option.
survivorship, non-forfeiture, return of premium, etc.
PHILADELPHIA, May 13 /PRNewswire-FirstCall/ -- Regulators have mandated that all insurance products must begin using a new mortality table for non-forfeiture and valuation purposes no later than January 1, 2009.
Returning to Boston, Wright undertook a journalistic and lobbying campaign to reform the American life insurance business, which at that time did not provide any guaranteed non-forfeiture benefits, although some companies voluntarily granted them on a case-by-case basis.
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