What is a significant feature of Limited-Pay insurance?

Limited-Pay insurance is designed with a specific premium payment schedule that allows the insured to make payments for a limited period while still providing life insurance coverage for their entire life. One of the key characteristics of this type of policy is its ability to build cash value relatively quickly, often after just a few premium payments.

This feature is significant because it differentiates Limited-Pay insurance from other types of policies that may require longer durations before cash value accumulation begins. The cash value component can provide policyholders with options, such as borrowing against the policy or using it for various financial needs, enhancing the overall appeal of Limited-Pay insurance for those looking for both life coverage and an investment-like benefit.

Other features mentioned in the options, such as requiring lifetime premium payments, ceasing payments at a certain age, or the ability to convert to term insurance, do not accurately describe Limited-Pay insurance and do not reflect its unique nature regarding cash value accumulation.