What are nonforfeiture options primarily concerned with?

Nonforfeiture options are primarily focused on how a policyholder's cash value is handled when a life insurance policy lapses due to non-payment of premiums. These options are designed to protect the benefits that the policyholder has accumulated, ensuring that despite the policy not being active, the insured can still access some form of value from the payments they have already made.

In this context, if a policy lapses, the policyholder has certain rights regarding the cash value that has built up over time. Nonforfeiture options typically include options like taking a reduced paid-up insurance policy or a cash surrender value. These options serve as a safeguard for the policyholder, ensuring that they can retain some benefits even if they can no longer continue paying premiums.

The other choices relate to different aspects of insurance and do not encapsulate the essence of nonforfeiture options. Increased death benefits and double indemnity options concern the policy's face amount or payout under specific circumstances, rather than how cash value is treated if the policy lapses. Tax implications of withdrawing cash values concern financial planning and tax regulations but do not directly relate to the nonforfeiture choices available to policyholders once a policy lapses. Thus, focusing on how cash value is managed aligns