noun
- a provision in an insurance policy that allows the policyholder to retain some benefits even if premium payments stop
Usage: insurance terminology
Examples
- The life insurance policy included a nonforfeiture clause that protected her investment.
- Thanks to the nonforfeiture provision, he could still access the cash value of his policy.
- The insurance agent explained the nonforfeiture options available if payments were missed.
- Nonforfeiture benefits ensure that policyholders don’t lose everything if they can’t continue paying premiums.
- She chose the reduced paid-up insurance option under the nonforfeiture clause.
- The nonforfeiture value of the policy had grown substantially over twenty years.