Non-forfeiture clause

Life policy clause that keeps the policy in force out of the surrender value for a limited period, after the grace period and continued nonpayment of the renewal premium. The policy may remain open for one year or until the surrender value has been exhausted. If a limited period applies, any balance remaining is paid to the insured or used to buy a paid-up policy. When the non-forfeiture period ends a revival clause may apply.

Leave a Reply

Your email address will not be published. Required fields are marked *