What are non-forfeiture benefits in life insurance meant to provide?

Non-forfeiture benefits in life insurance are designed to protect policyholders by ensuring they retain some value from their policy even if they stop paying premiums. These benefits are crucial as they prevent a complete loss of the policy's value, which can happen if the insured is unable to continue making premium payments. Non-forfeiture options could include a reduced paid-up policy or extended term insurance, which allow the insured to maintain coverage in some form rather than losing all benefits. This is particularly important for policyholders who have invested in their life insurance policy over time and may face financial difficulties that hinder their ability to continue premium payments. By retaining value, these benefits provide a safety net, allowing individuals to secure coverage even in adverse situations.