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What is meant by a Non-forfeiture Option (NFO)?

April 26, 2017meant nfo non-forfeiture option

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What is meant by a Non-forfeiture Option (NFO)?

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A Non-forfeiture Option is a benefit given to a Policyholder who owns an individual permanent plan. The policy earns Cash Values that can be used to continue the life insurance coverage even if the premium remains unpaid beyond the grace period. A policyholder can select from among four options: Cash Surrender Value, Extended Term Insurance, Loan Value and Paid-Up Insurance.