What describes Limited-Payment Life Insurance?

Limited-Payment Life Insurance is characterized by a payment structure where premiums are only required for a specific period, rather than for the entire life of the insured. This means that the policyholder will make premium payments for a set duration, after which the policy will remain in force for the lifetime of the insured without the need for further payments.

This type of insurance is particularly attractive to individuals who wish to ensure that their insurance needs are met without a lifetime of premium payments, offering a blend of long-term coverage with a shorter payment commitment. By the end of the designated payment term, the policyholder is fully paid up, meaning they have ensured a death benefit for their beneficiaries without ongoing costs.

The other choices do not accurately describe Limited-Payment Life Insurance, as they refer to different features or types of insurance arrangements. For instance, level premiums for the entire life pertain to whole life insurance, while lifetime protection suggests ongoing premium payments rather than a limited payment period. Therefore, the specificity of premiums being paid for only a set duration aligns perfectly with the definition of Limited-Payment Life Insurance.