Which clause prevents forfeiture of accrued benefits if a life insurance policy is dropped?

The nonforfeiture clause is designed to protect the policyholder by ensuring that they do not lose the benefits they have accrued in their life insurance policy if they decide to stop paying premiums or if the policy is dropped. This clause provides specific guarantees that allow policyholders to access the cash value or reduced death benefits instead of forfeiting all their paid premiums and accrued benefits.

For instance, if a policyholder decides to surrender the policy, the nonforfeiture clause ensures they receive the cash value accumulated, rather than losing everything completely. This feature is designed to provide a safety net, making life insurance more valuable and less risky for consumers by ensuring they still have access to some benefits under various circumstances.

Other clauses mentioned have different purposes. The waiver of premium clause allows policyholders to skip premium payments while maintaining coverage in the event of certain conditions, like being disabled. The loan provision clause allows policyholders to borrow against the cash value of their policy, affecting how benefits are handled but not preventing forfeiture. Lastly, the accidental death benefit clause offers additional coverage for deaths resulting from accidents, which does not relate to forfeiture of benefits. Thus, the nonforfeiture clause is the correct choice for maintaining access to accrued benefits if the policy is