Q: My policy has a Cash Value Rider, can insurance company force conversion to paid-up insurance non forfeiture option?

A: I can provide some general information about life insurance policies with cash value riders and non-forfeiture options, but please note that the specific details and your options will depend on the terms of your individual policy and the laws of your state. It's best to carefully review your policy documents and consult with a qualified insurance professional or attorney for personalized advice.

Cash Value Rider: A cash value rider is an additional feature on some life insurance policies that allows the policy to build cash value over time. This cash value can typically be accessed by the policyholder through loans, withdrawals, or surrender of the policy.

Lapse and Reinstatement: If a life insurance policy lapses due to non-payment of premiums, there is usually a grace period during which the policy can be reinstated by paying the overdue premiums and meeting certain requirements. However, if the policy is not reinstated within this period, the insurance company may have the right to decline reinstatement.

Non-Forfeiture Options: When a policy lapses, the policyholder may have non-forfeiture options available, which are designed to prevent the complete loss of coverage or premiums paid. Common non-forfeiture options include:

1. Paid-up Insurance: The policy is converted to a reduced, paid-up policy with no further premiums due, using the accumulated cash value.

2. Extended Term Insurance: The cash value is used to purchase term insurance for a limited period.

3. Cash Surrender: The policyholder receives the cash surrender value (the accumulated cash value minus any surrender charges) in exchange for terminating the policy.

Your Options: Whether you can choose to cash out your policy's cash value rider instead of accepting the paid-up insurance option will depend on the specific terms of your policy and applicable state laws. Some policies may require the insurer to offer a cash surrender option, while others may not.

Next Steps: Carefully review your policy documents to understand your rights and options. If you believe the insurance company is not following the terms of your policy or state laws, consider contacting the California Department of Insurance for guidance or consulting with an attorney specializing in insurance matters.