A life insurance policy that has premiums paid up within a select time period is called

• A. Single Premium Policy
• B. Flexible Premium Policy
• C. Limited Payment Insurance
• D. Paid-Up Policy

Answer: (C)

Limited payment life insurance is designed so you pay premiums for a limited period, and after that the policy is paid up. The coverage remains in force for life without any further premium payments, and the death benefit (and often cash value) continues as you’ve funded it during the payment period. This matches the description of premiums being paid up within a select time period.

Paying a single premium means one lump-sum payment up front, not a limited payment period. A flexible premium policy allows varying payment amounts over time. A paid-up policy means no further premiums are due because it’s already fully funded, which is a different concept from paying for a set period and then stopping.