DEFINITION of 'Values'

The worth of a nonforfeiture clause that specifies that an insured party would receive the equity from a life insurance policy, in the event that the policy were canceled because the premium payments were not made. The policy's value would be returned to the policy holder in some manner, either through a partial refund of the premiums that had been paid to date, or through the payment of a portion of the benefits.


Life insurance policy holders can select one of four nonforfeiture benefit options: the cash surrender value, extended term insurance, loan value and paid-up insurance. If the policy holder does not make a selection, the terms of the policy will generally stipulate which option would go into effect, in the event that the policy lapses or is surrendered.

  1. Surrender Period

    The amount of time an investor must wait until he or she can ...
  2. Surrender Rights

    A right to cancel an annuity or life insurance contract in exchange ...
  3. Life Insurance

    A protection against the loss of income that would result if ...
  4. Nonforfeiture Clause

    A clause in an insurance policy that allows for the insured to ...
  5. Cash Surrender Value

    The sum of money an insurance company will pay to the policyholder ...
  6. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the ...
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