Which of the following options is NOT considered a Nonforfeiture Option?

The correct answer, which indicates that “Automatic” is not considered a Nonforfeiture Option, is based on the definition and purpose of Nonforfeiture Options in life insurance policies. Nonforfeiture Options provide policyholders with a specified benefit if they stop paying premiums or if their policy lapses due to nonpayment.

In contrast to the other options listed, which include Cash Surrender Value, Reduced Paid-Up Insurance, and Extended Term Insurance, "Automatic" does not refer to a specific type of benefit or option that a policyholder can choose.

• Cash Surrender Value allows the policyholder to receive a cash amount based on the accumulated value of the policy if they decide to surrender it.

• Reduced Paid-Up Insurance converts the existing insurance policy into a paid-up policy for a lesser amount of coverage, allowing the policyholder to keep insurance in force without further premium payments.

• Extended Term Insurance allows the policyholder to convert the cash value into a term insurance policy for a specified time, effectively extending the coverage without ongoing premium payments.

Since "Automatic" lacks the clarity of a specific benefit or type of insurance option and does not fit the definition of a Nonforfeiture Option, it is correctly identified as the answer that is