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,
  • A set of rules or guidelines.
  • An insurance contract.
• 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.