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Term Life Insurance by Top
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TERM LIFE INSURANCE NON-FORFEITURE POLICY PROVISIONS
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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:
general contractual policy definitions
general
contractual policy provisions
contractual policy premium provisions
contractual policy renewal,
conversion, and exchange provisions
contractual non-forfeiture
policy provisions
contractual policy loan
provisions
contractual endorsement policy provisions
contractual settlement payment options policy provisions
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