Which of these is considered a non-forfeiture option in a permanent life insurance policy?

Question: Which of these is considered a non-forfeiture option in a permanent life insurance policy?

Answer options:

• Policy loan. ✅ Reduced paid-up insurance.
• Changing the beneficiary.
• Converting the policy to term.

Correct answer: Reduced paid-up insurance.

Explanation: Non-forfeiture options are ways to receive the policy's cash value if you stop paying premiums. 'Reduced paid-up' is an option where the cash value is used to purchase a smaller, fully paid-up policy of the same type.