Complete this sentence: "Typically, the shorter the premium-paying period, the _________________."

The statement "Typically, the shorter the premium-paying period, the higher the premium" is correct because, in insurance, a shorter premium-paying period means that the policyholder is paying the same total amount of premium in a condensed timeframe. This often results in higher periodic payments compared to a longer premium-paying period, where costs are spread out over a more extended period.

When premiums are paid over a shorter duration, insurance companies typically assume a higher risk since the payment must be made within a limited time frame. Additionally, the insurer may justify the higher premium by the administrative costs associated with processing more payments within a shorter timeframe.

In contrast, longer premium-paying periods allow the insurer to benefit from the time value of money and the spread of risk over a more extended period, which usually results in lower periodic premiums. The other options do not align with this concept of premium payment periods and their relationship to costs and benefits.