What are the three non-forfeiture values in a permanent policy?

The non-forfeiture values in a permanent life insurance policy are designed to provide the policyholder some level of benefit if they decide to discontinue premium payments. These values are essential in ensuring that the policyholder does not lose all accrued benefits upon policy termination.

Cash surrender value is the amount of money a policyholder would receive if they choose to cancel the policy, reflecting the savings component built up over time. Paid-up value, often referred to as the reduced paid-up insurance, allows the policyowner to retain coverage for a lesser amount of insurance without needing to pay further premiums. Extended term insurance is another option that allows the policyholder to convert the cash value into a term life insurance policy for a specified period, ensuring continued protection without restarting premium payments.

Each of these values offers a safety net for the policyholder, providing flexibility depending on their financial needs and circumstances. By including cash surrender value, paid-up value, and extended term insurance, the correct option captures the essence of the policy’s design to protect the insured's interests.