Nonforfeiture

Nonforfeiture is a rider for Long-Term Care Insurance that provides residual benefits to policyholders who stop paying premiums (lapse their policies).

These riders often happen in a paid-up policy, providing a regular benefit for a shortened period of time. 

Another form of nonforfeiture is a return of premium, which returns part of the money you have paid. The benefits provided depend on how long you've had the policy and paid premiums. 

The last type of nonforfeiture is a contingent nonforfeiture benefit. This is built into every tax-qualified Long-Term Care Insurance policy as required by NAIC Model Regulations. This benefit gives insured individuals options in the event of an approved premium increase over a certain percentage based on age.