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TERM LIFE INSURANCE NON-FORFEITURE POLICY PROVISIONS

 

What are the contractual provisions of a term life insurance policy contract?
These term life insurance contractual non-forfeiture policy provisions are general in nature and may differ by insurance company and/or by policy filing.

NON-FORFEITURE PROVISIONS
NON-FORFEITURE OPTIONS

A non-forfeiture option may be elected by written notice during the Insured's lifetime. The effective date of an option will be the date to which premiums for this Policy have been paid. The following options apply if this Policy has a positive net cash value. The net cash value is the cash value less the loan balance. For paid-up and extended term insurance, the net cash value is the net single premium at the Insured's attained age for any benefits remaining under that insurance less the loan balance.

Policy Surrender

The Owner may surrender this Policy. The amount payable upon surrender will be the net cash value on the effective date of this option. Paid-up or extended term insurance may be surrendered at any time for the net cash value at that time. Payment may be deferred up to six months after notice is received at the administrative office. A surrender within 30 days after a policy anniversary will be for an amount not less than the value on the anniversary, less any loan made since the anniversary and the accrued interest on that loan.

Paid-Up Insurance

This Policy may be continued as reduced paid-up insurance from the effective date of this option. The amount of insurance will be that which the net cash value will provide when applied as a net single premium at the Insured's attained age. This paid-up insurance will be payable at the same time as the insurance under this Policy, and it will be subject to the applicable provisions of this Policy.

Extended Term Insurance

This option is available if extended term insurance values are shown in the Table of Non-forfeiture Values. Under this option, insurance will be continued in force as term insurance from the effective date of this option. The amount of extended term insurance at any time will equal:

• the Amount of Insurance shown in the Schedule for the appropriate policy year; times

• the difference between the Amount of Insurance on the effective date and the loan balance on that date; divided by

• the Amount of Term Life Insurance on the effective date.

The period of extended term insurance will be that which the net cash value will provide

when applied as a net single premium at the Insured's attained age. This Policy will terminate at the end of the period of extended term insurance. This option is not available if the Premium Classification in the Schedule is Rated Class, unless the rating is a temporary flat extra of five years or less.

Automatic Option

If extended term insurance is available, the automatic option is the Extended Term Life Insurance option; if not, it is the Paid-Up Insurance option. The appropriate option will automatically apply when:

• the unpaid premium has not been paid by automatic premium loan; and

• no other available option has been elected.

The Owner may elect one of the other available options within 60 days after the effective date of this option.


 BASIS OF VALUES

All calculations, including net single premium calculations, are based on the mortality table and rate of interest shown in the Table of Non-forfeiture Values. Death is assumed to occur at the end of the policy year. Riders are ignored when determining non-forfeiture values under this Policy. Values are in no case less than the minimum values required by the state in which this Policy was delivered.


 This concludes the term life insurance non-forfeiture policy provisions section of the provisions of a term life insurance policy contract.


 Related:
get a quote  general contractual policy definitions
get a quote  general contractual policy provisions
get a quote  contractual policy premium provisions
get a quote  contractual policy renewal, conversion, and exchange provisions

 get a quote  contractual non-forfeiture policy provisions

 get a quote  contractual policy loan provisions

 get a quote  contractual endorsement policy provisions

 get a quote  contractual settlement payment options policy provisions

      

   
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TermLifeAmerica.com- Lewis Fink is licensed as an insurance agent offering Life Insurance in the following states: Alabama - AL, Arkansas - AR, California - CA, Colorado - CO, Connecticut - CT, Delaware - DE, District of Columbia - DC, Florida - FL, Georgia - GA, Idaho - ID, Illinois - IL, Indiana - IN, Iowa - IA, Kansas - KS, Kentucky - KY, Louisiana - LA, Maine - ME, Maryland - MD, Massachusetts - MA, Michigan - MI, Mississippi - MS, Missouri - MO, Montana - MT, Nebraska - NE, New Mexico - NM, New Jersey - NJ, New York - NY, North Carolina - NC, North Dakota - ND, Ohio - OH, Oklahoma - OK, Pennsylvania - PA, Rhode Island - RI, South Carolina - SC, South Dakota - SD, Tennessee - TN, Texas - TX, Utah - UT, Vermont - VT, Virginia - VA, and Wisconsin - WI.  


Not all insurance products from all insurance companies are available in all states.
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