Question

A limited payment life insurance policy is best suited for:

a. Josh, a 25-year old successful entrepreneur with extra funds, who doesn't want to pay life insurance premiums when he retires.
b. Kelly, a 40-year single waitress who wants the most insurance protection for the least amount of money.
c. Megan and Tom, newlyweds who need a life insurance policy to cover the mortgage on their house.
d. Berry, an 18-year old student with limited funds.

Answer 1

A limited payment life insurance policy is best suited for a 25-year old successful entrepreneur with extra funds who doesn't want to pay premiums when they retire.

Step-by-step explanation:

A limited payment life insurance policy is best suited for option a. Josh, a 25-year old successful entrepreneur with extra funds, who doesn't want to pay life insurance premiums when he retires.

With a limited payment life insurance policy, the policyholder pays premiums for a defined period, such as 10 or 20 years, and then the policy remains in force for the remainder of the insured's life without the need for further premium payments.

This option is ideal for someone like Josh, who has extra funds and wants to avoid paying premiums during retirement.