Alex's life policy lapsed, which nonforfeiture option would the insurer send him the value of the policy?

The answer is - Cash surrender

Explanation:

When a person does not want to drop your insurance policy, you can use a non forfeiture option.

But this option works only, when the person has a whole life policy.

There are three types of non forfeiture options:

A: Cash surrender

B: Extended term insurance

C: Reduced paid up insurance

So, in this scenario, the best possible option is cash surrender.

The cash surrender amount is the total money that the insurance company will pay to Alex, as his policy is voluntarily terminated before its maturity.

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