What is limited pay whole life insurance

Definition: Limited payment whole life plan entails that the insurance protection is provided until the death of the insured, however, the premiums can be paid up to a certain period of time. Description: In a limited payment whole life plan, the premiums are paid only until a chosen age.

What's considered a limited pay life policy?

A limited pay insurance policy is a type of permanent life insurance product, sometimes called whole life, in which the policyholder pays premiums over a set period of time or until a specific age. When the agreed-upon period ends, the policyholder stops paying life insurance premiums and coverage continues.

What does a limited whole life policy provide?

Lifelong Protection with Fewer Payments\n\n With Limited Pay Whole Life, you can receive life insurance coverage that lasts a lifetime without paying for a lifetime. Choose the premium payment period that works best for you, 10 or 20 years.

What is the main disadvantage of whole life insurance?

A more complex product than term life insurance. Higher premiums than term life insurance.

What are the two types of whole life insurance?

Variations on the standard policy might offer different investment options, payment schedules, or be designed for specific circumstances. The different types of whole life insurance include: Indexed whole life insurance. Guaranteed issue whole life insurance.