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An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

- Limited-pay Life
- Variable Life
- Adjustable Life
- Graded Premium Life

1 Answer

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Final answer:

The kind of life insurance policy that is paid up after a set number of years of premium payments is called Limited-pay Life insurance.

Step-by-step explanation:

The life insurance policy that requires an insured to only pay premiums for a specified number of years until the policy is fully paid up is known as Limited-pay Life insurance. This type of policy is designed for individuals who want to pay for their life insurance coverage within a certain time frame, after which the policy remains in effect without the need for further premium payments. Once the payment period is complete, the policy is considered paid-up and the insured is covered for life.

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