Question

A Limited-Pay Life policy has

-graded death benefits
-no cash value
-premium payments limited to a specified number of years
-premium payments that are paid to age 100

Answer 1

A Limited-Pay Life policy is a type of life insurance policy with graded death benefits, no cash value, limited premium payments, and payments made until age 100.

Step-by-step explanation:

A Limited-Pay Life policy is a type of life insurance policy that has several specific features:

1. The policy has graded death benefits, which means that the death benefit amount increases gradually over time. It may start at a lower amount and then increase each year until it reaches the full amount.
2. The policy does not have any cash value, meaning that it does not build up any savings or investment component like some other types of life insurance policies.
3. The premium payments for the policy are limited to a specific number of years. Once the specified number of years is completed, the policyholder no longer needs to pay premiums.
4. The premium payments for the policy are paid until the policyholder reaches the age of 100. After that, no premium payments are required.