Limited Payment Life Insurance

A variation of whole life insurance with premium payments for a shorter, predetermined number of year (e.g. 10, 15 or 20 years). The death benefit remains available for the lifetime of the insured or until the insured reaches a specific age (e.g., 100 or 200 years). Premiums may be paid monthly, quarterly, semiannually or annually. The policy’s guaranteed cash value grows tax-deferred. Because there are fewer payments, premiums for limited payment life insurance tend to be higher than those paid for other while life polices.