Which of the following options is considered a nonforfeiture option in a whole life insurance policy?

In the context of a whole life insurance policy, a nonforfeiture option refers to a benefit that a policyholder can utilize if they decide to stop making premium payments. Nonforfeiture options are crucial because they ensure that the policyholder does not completely lose the value of their policy when they can no longer afford to pay premiums.

Extended Term Insurance is a specific type of nonforfeiture option that allows the insured to convert the accumulated cash value of the whole life policy into term insurance coverage for a specified period. This allows the policyholder to maintain a form of life insurance coverage without having to pay premiums, thus preserving some of the value of the policy.

While the Waiver of Premium provision allows the policyholder to stop paying premiums under certain conditions (like disability), it is not considered a nonforfeiture option because it does not convert the policy or preserve its cash value. The Accidental Death Benefit provides additional coverage if the death occurs due to an accident, but it does not relate to nonforfeiture benefits. The Guaranteed Insurability option allows the policyholder to purchase additional insurance coverage without providing evidence of insurability later but is not a nonforfeiture option either.

The chosen answer, Extended Term Insurance