What term describes the benefit of a life insurance policy that is retained even if the policy lapses?

The correct answer is C, which refers to "Nonforfeiture Values." Nonforfeiture Values are important features of certain life insurance policies, particularly whole life policies, that ensure the policyholder retains some benefits even if they stop paying premiums and the policy lapses.

These values help protect the policyholder's investment in the policy by allowing them to access benefits such as cash surrender values or reduced paid-up insurance when they can no longer maintain premium payments. It provides a safety net, ensuring that the insured does not completely lose the benefits accrued over the years.

Understanding nonforfeiture values is crucial because they reassure policyholders that they have options if they face financial difficulties. This term highlights the peace of mind that comes with knowing that the insurance policy has a value that can be tapped into even if the policy is not active.