A paid-up nonforfeiture benefit becomes effective as specified unless the person elects another option within how many days after the premium is in default?

The correct answer is that a paid-up nonforfeiture benefit becomes effective after 60 days following the premium default unless another option is elected by the policyholder. This provision is crucial as it helps protect policyholders when they fail to make a premium payment. The nonforfeiture benefit ensures that the policyholder does not lose all value from the insurance policy after a lapse in premium payment, allowing them to retain some benefits even if they cannot continue their coverage in the same manner.

The 60-day period gives the policyholder ample time to decide whether to reinstate their policy or take advantage of the paid-up benefit, reflecting an important consideration of consumer protection in the insurance industry. By allowing policyholders this window, it reinforces the idea that their invested premiums have ongoing value, thus encouraging responsible financial planning.