Which non-forfeiture option offers the most protection?

The option that offers the most protection among the non-forfeiture options is fully paid insurance. This option allows a policyholder to convert their existing policy into a paid-up permanent policy, providing lifetime coverage without the need for further premium payments. With fully paid insurance, the insured retains their coverage and benefits even if they decide to stop making premium payments, ensuring that their beneficiaries have some level of financial protection, typically at a reduced death benefit.

Extended term insurance is a non-forfeiture option that allows a policyholder to use their cash value to purchase term insurance for a specified period. While it provides coverage for a limited time, once that period ends, there is no further protection, which means it does not offer the same level of ongoing security as fully paid insurance.

Cash surrender value, on the other hand, involves giving up the policy for its cash value, effectively ending the insurance coverage altogether. While the policyholder receives a sum of money, they lose all protection, which does not provide ongoing security for beneficiaries.

Thus, considering the continued coverage and benefits that fully paid insurance provides, it stands out as the option that offers the most comprehensive protection for the policyholder and their beneficiaries.