Which of the following is NOT a typical nonforfeiture option in life insurance?

A nonforfeiture option in life insurance refers to options available to policyholders when they stop paying premiums and have built up some cash value in their policies. When policyholders choose a nonforfeiture option, they are essentially deciding how to utilize their accrued value rather than forfeiting their benefits altogether.

The correct answer, which is not a typical nonforfeiture option, is the accelerated death benefit. This option allows policyholders to receive a portion of their death benefit while still alive, generally in cases of terminal illness or the need for long-term care. It does not fall under the category of nonforfeiture options because it does not relate to the cash value accumulated within the policy or options available for preserving coverage when the policyholder can no longer pay premiums. Instead, it is a provision that enables access to benefits under specific circumstances.

In contrast, cash value accumulation, reduced paid-up insurance, and extended term insurance are standard nonforfeiture options. Cash value accumulation is the growth of the cash value component of permanent life insurance policies. Reduced paid-up insurance allows the policyholder to convert their policy into a paid-up policy for a lesser amount of coverage, while extended term insurance converts the policy into term insurance for a specified period,