Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy?

In the context of whole life insurance policies, nonforfeiture options are benefits that policyholders can access if they choose to discontinue premium payments. These options ensure that the policyholder does not completely lose the value of their policy.

The option that is not considered a nonforfeiture option is “interest only.” Interest only involves a payment arrangement where the insurer pays only interest on the policy's cash value, which occurs in certain contexts such as loans or withdrawals but does not represent a benefit that the policyholder can choose if they decide to stop paying premiums.

On the other hand, paid-up insurance allows the policyholder to stop paying premiums while still retaining coverage; cash surrender value gives the policyholder the option to receive the accumulated cash value of the policy; and extended term insurance allows policyholders to use their policy's value to purchase term insurance for a limited time. Each of these options provides a tangible benefit for the policyholder if the policy is surrendered or if premium payments cease, making them valid nonforfeiture options.