What type of policy provides protection for a limited term with premiums payable for a set number of years?

A limited pay life policy is designed to provide insurance protection for the insured's lifetime, with premiums set at a specified amount that must be paid over a defined period, such as 10, 15, or 20 years. Unlike a whole life policy, which requires ongoing premium payments throughout the policyholder's lifetime, a limited pay life policy allows the policyholder to accumulate cash value quickly while ensuring that the policy remains in force after the premium payments are complete.

The defined payment period means that after the expiration of that term, no further premiums are due, yet the insurer continues to provide coverage for the lifetime of the insured. This can be particularly appealing for individuals who want to be finished paying premiums by a certain age but still wish to have the benefits of life insurance.

Whole life policies involve premium payments that continue throughout the insured's life, while term life policies offer coverage for a specified term without cash value accumulation. Universal life policies are flexible in terms of premium payments and death benefits but do not specifically focus on a limited payment period as limited pay life policies do.