Which of the following is an example of a nonforfeiture option?

A nonforfeiture option is a provision that allows policyholders to receive a benefit from their life insurance policy if they decide to stop paying premiums, thereby not completely forfeiting the value they have built up in their policy.

The reduced paid-up option is a type of nonforfeiture option where the policyholder can choose to stop paying premiums and, instead, convert the existing policy into a reduced amount of paid-up insurance. This allows the policy to remain in force for a reduced benefit amount, effectively preserving some value rather than losing it entirely.

The cash surrender value represents the amount the policyholder would receive if they decided to cancel the policy entirely, which is a specific benefit but not a mechanism for keeping the policy active in some capacity. The extended term option allows the policyholder to convert their whole life insurance into term insurance for a specified period, which does preserve some insurance but is considered more complex in its functional application. Paid-up additions refer to a method of using dividends to purchase additional coverage but do not constitute a nonforfeiture option in the context of allowing a policyholder to maintain some value without ongoing premium payments.