Which policy pays premiums for a limited period and provides coverage for life?

• A. Term Life
• B. Whole Life
• C. Limited Pay Whole Life
• D. Endowment

Answer: (C)

The concept being tested is how premium payment duration relates to how long the coverage lasts. The policy that fits “premiums paid for a limited period and coverage for life” is limited pay whole life. Here, you commit to paying premiums for a set number of years (such as 10, 20, or 20-pay), but the life insurance coverage continues for the insured’s entire life. The policy also builds cash value and becomes paid up after the designated payment period, meaning no further premiums are due while protection remains in force.

This differs from term life, which charges premiums for a defined term and provides coverage only during that term with no cash value and no lifelong protection. Endowment policies are designed to pay out at a specified future date or upon death, not to provide lifelong coverage after a limited premium period. Whole life requires premiums for the insured’s entire life, not a limited period, so it doesn’t match the criterion of paying for a limited time.