Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under a single premium whole life policy, the insured:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
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.
Why the other options are wrong
- B) Lifetime premium payments describe a continuous-premium (level premium) whole life policy, not a single premium plan.
- C) Paying premiums for a limited number of years describes limited-pay whole life, not a single payment.
- D) Term insurance is temporary coverage, not permanent, and is not what a single premium whole life policy provides.
Memory hook
One check, paid up forever. Single premium = instant permanence.