Which type of life policy requires premiums to be paid up within a limited number of years?

• A. Indexed universal life
• B. Adjustable life
• C. Whole life
• D. Limited payment insurance

Answer: (D)

Premiums paid up in a limited number of years describes limited payment life insurance. In this approach, you commit to paying premiums for a set period (for example, five, ten, or twenty years). After that period ends, the policy is paid up and no further premiums are due, yet the coverage remains in force for the insured’s lifetime. The death benefit and cash value features continue despite the premium payments stopping early, giving permanent protection without ongoing payments. This differs from whole life, where premiums continue for life, and from universal or adjustable life, which typically involve flexible or ongoing premium payments.