Which statement is true about a Limited Pay Whole Life policy?

A Limited Pay Whole Life policy is designed to provide lifetime coverage while allowing the policyholder to pay premiums for a defined period that is less than their entire lifespan. This structure means that after a specified number of years, usually 10, 15, or 20, the policyholder will have fully paid for the policy and will not need to make further premium payments, yet the policy remains in effect for the lifetime of the insured.

The aspect of level premiums is significant, as it means that the policyholder pays a consistent premium amount during the limited-pay period. After that term, the coverage continues without any additional costs, making it more manageable for individuals who prefer to limit their financial obligation over a shorter span.

In contrast, the other statements presented do not accurately describe a Limited Pay Whole Life policy. It does not offer variable premiums (which typically characterize variable life insurance policies), nor does it lack cash value, as these policies typically build cash value over time. Additionally, the product is not exclusive to seniors, but rather available to a broader audience based on insurability, age, and other underwriting factors. Thus, statement B captures the essence of what a Limited Pay Whole Life policy entails.