Non-Forfeiture Clause

Definition

  • A clause available in some insurance policies where the policyholder can receive some or all of the benefits, and/or a refund of premiums, from the insurance policy if the policy lapses due to the insured's inability to make the premium payments.

Related Terms and Acronyms

  • Forfeiture Definition,
    • Loss of property because of violation of law or contract.
  • Insurance Policy Definition,
    • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
  • Lapse Ratio Definition,
    • A ratio that compares how many life insurance policies have lapsed from the beginning year to the end.
  • Lapsed Policy Definition,
    • A policy that is no long in effect due to missed payments, inaction or its term ending.
  • Policy Definition,
    • An insurance contract.
    • A set of rules or guidelines.
  • Refund Definition,
    • To give back, return, or repay.
  • Waiver of Premium Definition,
    • A clause that allows an insurer to waive a policyholder's premiums while still keeping the policy in effect.
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