What is another term for nonforfeiture value in life insurance?

Nonforfeiture value in life insurance refers to the amount of value that a policyholder can access or retain in the event that they do not continue to pay their premiums. This value provides a safeguard for policyholders, ensuring they do not lose all their investment if they decide to stop paying for their life insurance. The nonforfeiture value is commonly known as the cash value of the policy, which accumulates over time as part of the policy’s benefits.

The cash value is a crucial aspect of whole life and universal life insurance policies. It grows at a guaranteed rate or based on the insurer's performance, depending on the type of policy. If a policyholder decides to surrender the policy, they can receive this cash value, or they may use it as collateral for a loan or to pay future premiums.

Other terms like insurance benefits, death benefit, and premium reserve do not specifically capture the essence of nonforfeiture value. Insurance benefits typically refer to the general benefits received from a policy, while the death benefit refers to the amount paid to beneficiaries upon the policyholder's death. A premium reserve relates to the funds set aside to ensure that future policy obligations can be met but does not represent the cash value accessible to a policyholder.