What is the only non-forfeiture option that can occur automatically?

The only non-forfeiture option that can occur automatically is the Automatic Premium Loan. This feature is typically included in whole life insurance policies to help prevent the policy from lapsing due to non-payment of premiums.

When a policyholder misses a premium payment, instead of the policy lapsing, the insurer will automatically take a loan against the cash value of the policy to cover the premium. This ensures that the policy remains in force, and it provides the policyholder with a safety net by using accumulated cash value, which helps avoid the loss of coverage.

Other non-forfeiture options, such as Cash Surrender Value, Reduced Paid Up Insurance, and Extended Term Insurance, require the policyholder to make an active choice or election. These options usually come into play when a policy is abandoned or canceled, or when the policyholder specifically opts for one of the alternatives concerning their policy's value. Thus, they do not occur automatically without the policyholder's explicit desire or action.