What happens under annuity non-forfeiture options?

Under annuity non-forfeiture options, the policyholder is granted certain rights to preserve some value of the annuity in case they choose to discontinue making payments or decide to terminate the contract. One of the primary non-forfeiture options is the ability to surrender the annuity for cash. This means that the policyholder can receive the accumulated value of the annuity, providing them with immediate liquid assets rather than losing everything upon cancellation.

The concept of non-forfeiture is significant because it protects the policyholder's interest in the investment they have made in the annuity. If the annuity has a cash value component, this value can be taken out as a lump sum. This is beneficial for policyholders who may need funds due to financial circumstances or who wish to move their investments elsewhere.

The other options do not focus on the preservation of value that is the essence of non-forfeiture options. Voiding the annuity entirely doesn't align with the non-forfeiture concept. The possibility of increasing the value is not a characteristic of non-forfeiture; this typically relates to the ongoing growth of the annuity if maintained and funded. Lastly, transferring the annuity does not represent a non-forfeiture scenario, as it concerns transferring