The life insurance policy in which death benefits last a lifetime but premiums are all paid after a specified time period is a(n) ____ life policy.

Question

Quizplus · Accepted Answer

A limited-pay whole life policy is a type of life insurance where premiums are paid for only a specified period of time, such as 10 or 20 years, but the death benefit lasts for the lifetime of the insured. This type of policy is attractive to those who want the long-term protection of whole life insurance, but do not want to pay premiums for their entire life. Endowment policies provide a lump sum payment to the insured when the policy matures, while universal policies are more flexible in terms of premium payments and death benefits. Modified policies typically refer to policies with reduced premiums in the early years of the policy, but increasing premiums later. Therefore, limited-pay whole life is the most accurate answer.

The Life Insurance Policy in Which Death Benefits Last a Lifetime