How does a policyowner usually opt for a non-forfeiture option?

A policyowner typically opts for a non-forfeiture option during the application process for a whole life or endowment policy. Non-forfeiture options are provisions that protect a policyowner's accumulated value in the event that they can no longer afford to pay premiums.

By selecting these options upfront, the policyowner ensures that they have made an informed decision about how to handle their policy if premium payments cease. These options can include choices like taking the cash surrender value, using the value to purchase reduced paid-up insurance, or extending the term of insurance until the policy's value is exhausted.

Choosing these options during the application stage establishes the policyowner's preferences and ensures that they understand the implications of their choices for the future. This proactive approach enables owners to maintain some level of benefits even if they face financial challenges later on.