Which of the following is considered a non-forfeiture option in life insurance?

Non-forfeiture options in life insurance are provisions that allow policyholders to retain some value from their policies if they decide to stop paying premiums or if their policy lapses. These options are particularly relevant for whole life policies, which build cash value over time.

Paid-up insurance is a specific type of non-forfeiture option that allows the policyholder to use the accumulated cash value to convert their existing life insurance policy into a new, paid-up policy. This new policy will provide coverage for a reduced face amount but won't require any further premium payments. This feature ensures that the policyholder does not lose all their benefits, even if they can no longer afford to pay premiums.

The other options listed, while they may relate to benefits or features of life insurance, do not qualify as non-forfeiture options. For example, an accelerated death benefit allows a policyholder to receive a portion of the death benefit while still alive under certain circumstances, but it doesn't retain value for a lapsed policy. The immediate payment option refers to how benefits are paid out but doesn't address non-forfeiture of benefits. Whole life insurance is a type of policy that can generate non-forfeiture options but does not itself represent a specific non-forfeiture choice.