Final answer:
Limited payment whole life insurance is where premiums are payable for a shorter period than the insured's life, with a death benefit guaranteed for life and a policy that accumulates cash value.
Step-by-step explanation:
The type of whole life insurance where premiums are payable for a specified period shorter than the insured's lifetime is known as limited payment whole life insurance. Unlike traditional whole life policies where premium payments are made for as long as the insured lives, limited payment policies are structured so that you pay premiums for a certain period, but the death benefit is guaranteed for the insured's entire life.
This type of policy also builds cash value over time, which can be borrowed against or withdrawn. It can be particularly attractive to those who prefer to pay premiums during their working years and be free of payment obligations in retirement, while still maintaining coverage for their beneficiaries.