Which of the following is NOT considered a nonforfeiture option?

A nonforfeiture option refers to the alternatives available to a policyholder when they stop paying premiums on their whole life insurance policy. These options typically allow the insured to retain some value from the policy rather than losing everything.

Among the listed options, the cash dividend option does not fall under the category of nonforfeiture options. Instead, it pertains to the dividends that a mutual insurance company may pay to policyholders, which can be taken as cash, used to reduce premiums, or invested. The cash dividends are a reward for the policy's favorable performance but do not provide any benefit related to the policy's value in the case of nonpayment.

In contrast, the extended term option allows the policyholder to use the cash value of the policy to buy a term life insurance policy for a specified period, while the reduced paid-up option provides a fully paid-up life insurance policy of a reduced face amount. The automatic premium loan option enables the insurance company to automatically use the cash value of the policy to pay an overdue premium, preventing lapsing of the policy. This emphasizes that nonforfeiture options help policyholders maintain some benefits of their insurance policies despite non-payment of premiums.