nonforfeiture


Also found in: Financial.

nonforfeiture

(ˌnɒnˈfɔːfɪtʃə)
n
(Insurance) insurance a clause in a life insurance policy describing the terms under which a lapsed policy remains valid if the premium is not paid
References in periodicals archive ?
The right to avail of these benefits are stipulated in the insurance policy itself or as benefits in nonforfeiture clauses.
Cash surrender value, or nonforfeiture value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
Other highlights of this new product are inflation protection features, nonforfeiture options and benefits for care giver training, respite care and nursing home bed reservations, according to Paul Rego.
Many of those enrollees still have some coverage from the long-term care insurance program, because they received paid-up "nonforfeiture" coverage when they decided to stop paying the premiums.
A typical life insurance policy should assure minimum cash values in the event of lapse or termination of the policy and provide certain standard options as to how the policyowner may receive these "nonforfeiture" values.
Adopting the new method requires amendments to state standard valuation and standard nonforfeiture laws for life insurance policies.
The CSO tables are smooth mortality tables used for conservative nonforfeiture value calculations for the protection of the insurer (a major concern of insurers and regulators) and do not anticipate extraordinary health changes in individuals but only anticipate aggregate group mortality change characteristics.
Needless to say, the above illustration is merely meant to show how wadi'ah works to provide for the nonforfeiture benefits.
Because the defined benefit plan required that the employee begin to receive benefits as soon as employment is terminated, and the employee elected to receive benefits immediately in the form of an annuity, the nonforfeiture rule was satisfied.
An ESOP must meet specific requirements pertaining to coverage, nondiscrimination in contributions, limits on contributions, diversification of investments, and nonforfeiture of rights upon termination of employment.
The nonforfeiture requirement is met for any level premium contract if the issuer of the contract offers to the policyholder (including any group policyholder) a nonforfeiture provision that: