Nonforfeiture Options — Florida (F.S. 627.476)

Under Florida's Standard Nonforfeiture Law (F.S. 627.476), a life policy must provide a paid-up nonforfeiture benefit on default (on a plan stipulated in the policy) and a cash surrender value on surrender after premiums have been paid at least 3 full years. The three standard nonforfeiture options this produces in practice: (1) reduced paid-up life insurance; (2) cash surrender value; (3) extended-term life insurance.

Walk away from a Florida policy with cash value and you still leave with something: smaller paid-up coverage, a check, or full coverage on a countdown timer.