What characterizes a Limited-Pay Life policy?

A Limited-Pay Life policy is specifically designed to require premium payments for a limited period, rather than throughout the lifetime of the policyholder. The concept behind option B, "Life Paid-Up at Age 70," aligns with the essence of a Limited-Pay Life policy, where the policyholder might pay premiums until a specified age, such as 70, after which the policy becomes fully paid up. This means coverage remains in force without further premium payments.

For a Limited-Pay Life policy, the structure allows individuals to accumulate cash value while also ensuring that they have life insurance coverage without the burden of ongoing premiums into their later years. This makes it suitable for those who want to stop paying premiums by a certain age but still desire life insurance benefits.

Options that suggest payment until death, paying premiums for a set number of years only, or cash value accumulation at retirement do not capture the key characteristic of a Limited-Pay Life policy as accurately as the notion of becoming paid up at a certain age does. This specificity is what distinguishes a Limited-Pay policy from other types of life insurance contracts.