Question

Whole life insurance provides death protection and a cash savings feature. Which of the following policies is potentially the least expensive over the life of the contract?

A. Single premium whole life policy
B. Whole life policy
C. An endowment
D. Limited payment policy

Answer 1

The potentially least expensive over the life of the contract is the D) Limited payment policy.

Step-by-step explanation:

Out of the given options, the potentially least expensive over the life of the contract is the Limited payment policy. Unlike whole life insurance policies, which require premium payments throughout the insured's life, a limited payment policy allows the policyholder to pay premiums for a fixed period of time.

After the payment period is completed, coverage continues for the entire life of the insured without any further premium payments.