Cash surrender value, or
nonforfeiture value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
The CSO tables are smooth mortality tables used for conservative
nonforfeiture value calculations for the protection of the insurer (a major concern of insurers and regulators) and do not anticipate extraordinary health changes in individuals but only anticipate aggregate group mortality change characteristics.
(26.) Under common usage, a lapse is what occurs after the policy has "run out of steam." Legalistically, however, a lapse is defined as "a default in premiums before a policy has a
nonforfeiture value." L.
NONFORFEITURE VALUE also called cash surrender value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
NONFORFEITURE VALUE, also called cash surrender value is me sum of money an insurance company wm pay a policyholder he or she decides to cancel the policy before it expires or before he or she dies.
NONFORFEITURE VALUE, also called cash surrender value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
nonforfeiture values: Those values or benefits in a life insurance policy that by law the policyowner does not forfeit, even if he or she chooses to discontinue payment of premiums.
For consumers of life insurance, the rise of a healthy secondary market would provide a competitive alternative to
nonforfeiture values and surrender values, Birnbaum said.
Included in this rule is a definition of the maturity date, as well as the insurer requirements to be used in calculating the
nonforfeiture values for certain product features and designs used in annuity contracts.
Isn't it in the public's best interest to assure that reasonable
nonforfeiture values are provided by insurance companies?
If the rate of termination is high enough, insurers may be forced to liquidate some assets to pay
nonforfeiture values to the surrendering policyholders.
But otherwise, the VL policyowner is provided with most of the usual features of traditional level premium life insurance including guaranteed maximum mortality charges,
nonforfeiture values, a reinstatement period, and settlement options.