Final answer:
The Extended Term option is not a dividend option on a Life Insurance policy; dividends can be used to pay premiums, taken in cash, or used to purchase paid-up additions.
Step-by-step explanation:
The option that is NOT a dividend on a Life Insurance policy issued by an insurer is the Extended Term option. Dividend options typically include: applying the dividend to the premium when due, taking the dividend in cash, and purchasing paid-up additional insurance. The Extended Term option refers to using the policy's cash value to purchase term insurance for a specified period if the policyholder stops paying premiums, and it is not a dividend option.