Which of the following is NOT an example of a dividend option available on a whole life insurance policy?

The option labeled as "Life income with period certain" is not considered a dividend option available on a whole life insurance policy. Instead, it is a settlement option that refers to how the death benefit can be distributed to the beneficiary upon the policyholder's death. Specifically, this option provides a guaranteed income for a specified period, and then continues to pay for the remainder of the beneficiary's life.

On the other hand, the other options are indeed recognized as dividend options that policyholders can choose from when they are participating in a whole life policy that pays dividends. For instance, the one-year term option allows policyholders to use dividends to purchase additional term insurance coverage for a year. The application to reduce premium allows policyholders to use dividends to offset their premium payments, and paid-up additions enable them to purchase additional whole life coverage using dividends, which can help to increase the policy’s cash value and death benefit over time.

Understanding these distinctions is important for those studying life insurance as it helps clarify how policy dividends can be utilized differently from income or settlement options.