What is the premium feature of a Single Premium Whole Life policy?

In a Single Premium Whole Life policy, the defining feature is the requirement to make a one-time, lump sum payment. This upfront payment covers the entire premium for the life of the policy, ensuring that the policyholder has permanent life insurance coverage without the need for ongoing premium payments.

This structure is advantageous for individuals who wish to simplify their financial planning, as it eliminates the need for multiple premium payments over time, and there are no additional payments due throughout the life of the policy. The single premium policy also accumulates cash value, which can grow on a tax-deferred basis, further benefitting the policyholder.

In contrast, choices that mention multiple premium payments, limited payment years, or variable premiums based on age do not align with the characteristics of a Single Premium Whole Life policy.