What is the main purpose of non-forfeiture benefits in life insurance?

Non-forfeiture benefits are designed to protect the policyholder's accumulated cash value in a life insurance policy in the event that they decide to stop paying premiums, which may lead to policy lapse. If the policy lapses, non-forfeiture benefits ensure that the insured does not lose all the value built throughout the life of the policy.

When a policy lapses, the policyholder can still utilize their cash value in different ways instead of losing it entirely. For instance, non-forfeiture options might include a reduced paid-up policy or extended term insurance, allowing the policyholder to retain some benefits from their original investment. This feature is particularly important because it offers a safety net to policyholders who may face financial difficulties but have contributed to the policy over time, ensuring that they don’t forfeit the investment they've made in their insurance coverage.

The other alternatives, while important aspects of life insurance, do not accurately describe the primary objective of non-forfeiture benefits.