What action can a policyholder take to avoid non-forfeiture benefits from applying?

To avoid non-forfeiture benefits from applying, a policyholder can keep the policy active by paying premiums. Non-forfeiture benefits are provisions in a life insurance policy that ensure the policyholder will receive some value from the policy if they no longer wish to continue paying premiums. These benefits come into play when the policy is lapsed due to non-payment.

When a policyholder continues to pay premiums, they maintain the active status of their policy and avoid triggering any non-forfeiture provisions, which would offer alternatives such as reduced paid-up insurance or cash surrender value if the policy were to lapse. This ensures that the policyholder retains their full coverage and benefits without being subjected to the implications of non-forfeiture.

Other options may suggest modifications or termination of the policy, but they do not focus on the active maintenance of the policy, which is crucial for avoiding non-forfeiture scenarios.