Final answer:
The nonforfeiture option that allows the policyowner to receive the policy's cash value is the cash surrender option.
Step-by-step explanation:
The nonforfeiture option that allows the policyowner to receive the policy's cash value is called the cash surrender option.
This option allows the policyowner to surrender the policy and receive the cash value that has accumulated over time. It is a way for the policyowner to access the money in the policy before the death of the insured.
For example, let's say you have a whole life insurance policy with a cash value of $10,000. If you choose the cash surrender option, you can surrender the policy and receive that $10,000 as a cash payment.