Which statement is NOT a typical life insurance nonforfeiture option?

The life income settlement option is not classified as a typical nonforfeiture option. Nonforfeiture options are designed to provide benefits to policyholders who stop paying premiums or surrender their policies. The key characteristic of nonforfeiture options is that they allow policyholders to maintain some form of coverage or benefit after they have discontinued premium payments, ensuring the value of their investment in the policy does not completely vanish.

The cash surrender option allows the policyholder to receive the accumulated cash value of the policy upon surrender. The extended term option enables the policyholder to convert the cash value into term insurance coverage for a specified period. The reduced paid-up option allows for the cash value to be used to purchase a smaller amount of paid-up insurance, which does not require further premiums.

In contrast, the life income settlement option is a way for a policyholder to receive the death benefit as an annuity for the rest of their life, but it does not pertain to what happens if a policyholder lapses their coverage or surrenders the policy. Therefore, it does not fit within the category of typical nonforfeiture options.