Final answer:
Tom, facing a terminal brain tumor, can use nonforfeiture options in his cash-value life insurance policy, such as the accelerated death benefit rider, cash surrender, or turning his policy into paid-up insurance, allowing him financial flexibility without further premium payments.
Step-by-step explanation:
The student is inquiring about which nonforfeiture option Tom should exercise given his recent diagnosis and life expectancy. Nonforfeiture options are built into cash-value life insurance policies and are designed to provide benefits even if the insured stops paying premiums. Considering his scenario, Tom might choose the accelerated death benefit rider if his policy includes it, which allows terminally ill policyholders to access a portion of their death benefit for immediate use. However, if that's not an option, Tom could either take the cash surrender value or paid-up insurance, depending on his needs and policy specifics.