Tennessee Insurance Practice Exam 2025 – All-in-One Resource for Exam Success!

The life insurance product that requires level premiums paid over a limited time is Limited Pay Life. This type of policy allows the policyholder to pay premiums for a specific duration, such as 10, 15, or 20 years, after which the policy is paid up, meaning no further premiums are necessary and the coverage continues for the lifetime of the insured. This structure offers the benefits of lifetime protection while allowing for a shorter payment period, making it attractive for those who wish to have their premium obligations completed within a certain timeframe.

Whole Life tends to have premiums that are paid for the entire duration of the policyholder's life, so it does not fit the criteria of paying premiums over a limited time. Universal Life policies typically offer flexible premium payments that can vary, which means they do not have a set limited premium payment duration. Term Life insurance is designed to provide coverage for a specified term (like 10, 20, or 30 years), but it does not require level premiums over a limited time; premiums usually might increase at certain intervals or remain level for the term duration, but it does not accumulate cash value, unlike Limited Pay Life.