Final answer:
In limited pay Whole Life insurance policies, the premiums are paid over a specified period, and typically, policies with longer payment periods have lower annual premiums. The 30 Pay Whole Life policy would generally have the lowest annual premium since the total costs are spread over the longest period among the given options. Hence, the correct answer is option C.
Step-by-step explanation:
The question refers to the different types of limited pay Whole Life insurance policies. In a limited pay Whole Life policy, the premiums are paid over a specified period, after which no further premiums are due. The options given are 10 Pay, 20 Pay, 30 Pay, and 25 Pay. Generally, the premium payments are higher for policies with shorter payment periods because the costs are amortized over a shorter amount of time. Therefore, policy with the longest payment period would typically have the lowest annual premium.
Out of the options provided, the 30 Pay Whole Life policy would have the lowest annual premium. This is because the total cost of the insurance is spread over 30 years, as opposed to 10, 20, or 25 years, thus reducing the annual payment amounts needed to cover the entire cost of the policy.