Which one of the following is not derived from the non-forfeiture values?

The correct answer is dividends, as they are not derived from the non-forfeiture values of a life insurance policy. Non-forfeiture values refer to the cash values and options available to a policyholder if they stop paying premiums, ensuring that they do not lose all value in their policy.

Cash surrender value is a non-forfeiture option that allows the policyholder to cash out the policy and receive a certain amount of money, representing the accumulated cash value minus any applicable surrender charges. Paid-up insurance is another non-forfeiture option where the policyholder can use the existing cash value to purchase a reduced amount of insurance coverage without needing to pay further premiums. Extended term insurance allows policyholders to convert their policy into term insurance for a certain period using the accumulated cash value, also a non-forfeiture option.

Dividends, on the other hand, are a distribution of surplus earnings from the insurer to its policyholders, which can be based on a mutual or participating life insurance company’s profitability. They are not directly related to the non-forfeiture values, as they are contingent on company performance and are paid out annually, rather than being a guaranteed benefit related to the policyholder's paid premiums or cash value.