Single Premium Whole Life (SPWL)
Whole life purchased with one lump-sum payment, creating immediate substantial cash value. It is a modified endowment if it fails the 7-pay test.
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Practice This Concept
Under a single premium whole life policy, the insured:
Makes one lump-sum premium payment, after which the policy is fully paid up and coverage continues for life — A single premium whole life policy requires one lump-sum payment at issue. Because the entire cost is paid up front, the policy is fully paid up immediately, permanent coverage continues for the insured's lifetime, and the policy builds immediate cash value. This is a distinct premium pattern under objective LIFE-II.B.3, contrasting with continuous-pay, limited-pay, and modified-premium plans.
National insurance concept
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