Which of the following is NOT considered a non-forfeiture option in life insurance policies?

In life insurance policies, non-forfeiture options are designed to provide the policyholder with benefits even if they stop paying premiums. These options ensure that the value of the policy is not lost entirely upon cessation of payments.

Reduced paid-up insurance allows a policyholder to stop paying premiums and still maintain a life insurance policy, albeit with a lower face value. Extended term insurance permits the policyholder to convert the cash value of the policy into a term insurance policy for a specific duration. Cash surrender value offers the insured the option to cancel the policy and receive the accumulated cash value as a lump sum payment.

Automatic premium loans, however, are not classified as a non-forfeiture option. Instead, this option provides a mechanism for a policyholder to prevent a policy from lapsing by automatically using the cash value of the policy to cover a missed premium payment. While it helps maintain coverage, it does not allow the policyholder a choice in the disposition of the policy's value. Therefore, it is distinct from the traditional non-forfeiture options, which provide tangible benefits if the policy is terminated.