Which of the following is NOT categorized as a nonforfeiture option?

Nonforfeiture options are benefits provided by a life insurance policy that enables a policyholder to maintain some level of coverage or value if they stop paying premiums or let the policy lapse. The correct answer identifies a choice that does not qualify as a nonforfeiture option.

Term insurance is designed to provide coverage for a specified period and typically does not have a cash value or any accrued benefits. If the insured dies within the term, the death benefit is paid; however, if the term expires and the policy is not renewed, there is no value or benefit retained by the policyholder.

In contrast, cash surrender value, paid-up insurance, and extended term insurance are all options that allow policyholders to utilize the accumulated benefits or values in a policy when premiums can no longer be paid. Cash surrender value allows the policyholder to cash out the policy; paid-up insurance enables them to convert their current coverage into a reduced amount of paid-up insurance with no further premiums; and extended term insurance allows policyholders to use the cash value to purchase term insurance for the same face amount for a specified period.

Thus, the choice of term insurance stands out as it does not provide any options or values that align with the definition of nonforfeiture options