What Is Limited Payment Life Insurance?
Limited Payment Life Insurance is a type of whole life insurance that enables you to prepay for the entire cost of your coverage for a fixed number of years. Unlike traditional permanent life insurance, where premiums are paid for the whole duration of an individual’s life, limited pay life insurance allows you to pay for the total cost of your premiums for a certain period.
How Does Limited Payment Life Insurance Work?
When selecting a limited pay whole-life option, the payment length must be determined at the initial purchase of the policy, and premiums are typically paid over the first 10 to 20 years. You may pay for your premiums monthly, quarterly, semi-annually, or annually if you select to do so in a limited time period—typically 10, 15, or 20 years. There is no option to allow their policy’s cash value growth to pay the premiums. Instead, they pay for the cost of the policy in its entirety over time.
A limited-pay life insurance policy is perfect for individuals who want life insurance coverage for life that requires premium payments to be made over a fixed period of time instead of the rest of a person’s life. With a limited pay whole-life policy, the cash value benefits remain, which allows any individual to acquire liquidity at any age or stage of their life.
Benefits of Limited Payment Life Insurance
One of the benefits of limited pay life insurance is that it offers death benefit security and living benefits that can help you pay for expenses while alive. Additionally, it is a perfect option for individuals who want permanent life insurance coverage and do not want to pay premiums for the rest of their lives.
Owners of life insurance policies can access liquidity through a policy loan, meaning that the cash value in their original policy still earns interest. A death benefit is included in all life insurance plans, but death and living benefits improve whole-life coverage.
If you’re looking for a life insurance policy that protects your loved ones without breaking the bank, limited-pay life insurance may be the right option. Contact us today to get a quote and see how much you can save. Our goal at GetSure.org is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you.
|Offers death benefit security and living benefits||Payments must be made over a fixed period of time|
|Provides liquidity at any age or stage of life||There is no option to allow the policy’s cash value growth to pay the premiums|
|Perfect for individuals who want permanent life insurance coverage and do not want to pay premiums for the rest of their lives|