What are the types of NFOs?
· Net Surrender Value – After the policy shall have been inforce for the minimum number of years required to acquire a Cash Value, the Policyholder may surrender the Policy for its Net Surrender Value (for Non-Participating Plans), which is the Cash Value derived from the Schedule of Policy Values of the Policy less any indebtedness. For Participating Plans, any remaining dividend accumulation is paid less any indebtedness under said Policy. · Extended Term Insurance (ETI) – The Policyholder may continue the Policy, without further premium payments, as an Extended Term Insurance with a level amount of insurance for the present policy year less any indebtedness under said Policy. The duration of the Extended Term Insurance will be computed based on the present age of the Policyholder. Some limitations during the effectivity of ETI: o Policy loans are not available o Policy will not earn dividends o All supplemental benefits are cancelled o Application for Cash Surrender Value is not all
