Which nonforfeiture option allows the policyowner to purchase less coverage for life?

The cash surrender value represents the amount the policyholder receives if they choose to cancel the policy. This option does not provide any life coverage; instead, it terminates the policy and pays out the accumulated cash value. Therefore, it does not allow for any continued insurance coverage at all.

Settlement value refers to the amount payable to the beneficiaries upon the death of the insured, usually specified in the policy terms. This option does not allow policyholders to purchase reduced coverage; rather, it is simply the final benefit amount paid to beneficiaries, dependent on the policy's original terms.

The extended term option uses the policy's cash value to convert it into term insurance for the same face amount but for a limited period. While it provides temporary coverage at the same face amount, it does not reduce the coverage amount; instead, it maintains the original face value for a specified term.