Which statement about the benefits of a limited payment life insurance policy is true?

A limited payment life insurance policy is designed to provide a lifetime of coverage while allowing the policyholder to pay premiums over a shorter period. This means that regardless of when the policyholder passes away, as long as the policy is in force, a death benefit will be paid out. One of the key features of these policies is that they guarantee a death benefit until age 100, which means the policyholder can be confident that their beneficiaries will receive the agreed-upon payout.

This aspect of limited payment life insurance is essential because it offers both financial security for the policyholder's beneficiaries and peace of mind for the policyholder, who won't have to worry about the policy lapsing due to non-payment of premiums later in life. The assurance of a guaranteed death benefit is a crucial selling point for individuals considering life insurance, as it aligns with long-term financial planning.

In contrast, the other options provide misleading or inaccurate representations of what limited payment life insurance entails, such as the incorrect assumptions about premium amounts, the nature of the death benefit, and payment structures.