What is the primary characteristic of limited pay whole life insurance?

Limited pay whole life insurance is designed to provide coverage for the lifetime of the insured but requires premium payments to be made only for a specified, limited period, typically a set number of years or until a certain age. The primary characteristic of this type of insurance is that it allows for higher premiums to be paid in a shorter time frame compared to traditional whole life policies, which can lead to the rapid accumulation of cash value.

By having these higher premiums, policyholders can build up cash value more quickly, which can be beneficial for those looking for an early investment aspect. This cash value can be borrowed against or accessed if the policy is surrendered. Thus, option B correctly identifies the essence of limited pay whole life insurance, emphasizing the financial strategy of building cash value sooner through higher premiums over a limited time.

In contrast, other options do not accurately capture the nature of limited pay whole life insurance. For example, lower premiums paid over an extended period do not reflect the premium structure of limited pay policies, and a one-time premium payment implies a different type of insurance product altogether, such as single premium whole life. Additionally, while some policies may not accumulate cash value, limited pay whole life insurance specifically allows for cash value accumulation, contradicting the notion that it