Which non-forfeiture option provides the largest amount of protection?

The option that provides the largest amount of protection is extended term insurance. This non-forfeiture option allows the policyholder to use the accumulated cash value of a whole life or universal life insurance policy to purchase a term insurance policy for the same face amount as the original policy, but without requiring any additional premium payments.

Extended term insurance maintains the full death benefit of the original policy for a specified period, offering more substantial protection to the beneficiaries compared to other non-forfeiture options.

In contrast, fully paid insurance allows the policy to remain in force without requiring further premiums, but the coverage may be significantly reduced depending on the cash value used. The cash surrender value option allows the policyholder to cash out their policy for its cash value, which terminates coverage altogether, providing no death benefit after surrendering the policy.

Therefore, extended term insurance effectively maximizes the death benefit protection for the policyholder’s beneficiaries, making it the most advantageous choice in this context.