What does a "non-forfeiture benefit" in life insurance policies ensure?

A "non-forfeiture benefit" in life insurance policies ensures that the policyholder does not lose the built value of the policy if they choose to discontinue paying premiums. This feature is particularly relevant in whole life and other permanent life insurance products, where cash value accumulates over time.

If a policyholder decides to stop paying premiums, the non-forfeiture benefit allows them to access the value that has been accumulated instead of losing their investment entirely. Common forms of non-forfeiture benefits include receiving a reduced paid-up insurance policy or cash surrender value.

In this way, the correct answer emphasizes the protection and value retention that policyholders have even if they encounter financial difficulties that prevent them from maintaining their premium payments. This provides a significant level of security and peace of mind for individuals holding such policies.