What happens to limited pay whole life policies once premiums are fully paid?

Limited pay whole life policies are designed to allow the policyholder to pay premiums for a specified period or until a certain age, after which no further premiums are due. Once the premiums are fully paid, the policy does not mature immediately or cease to exist; instead, it continues to provide coverage for the policyholder's entire lifetime, typically until age 100, as long as the policy is in force.

This means that the insured will have a death benefit that is payable to beneficiaries, and the cash value of the policy will also continue to grow, contributing to potential benefits when the policyholder reaches an advanced age or if they choose to access the cash value during their lifetime. The longevity of coverage is a key feature of whole life policies, distinguishing them from term life insurance, which provides coverage only for a defined period.

In summary, once the premiums of a limited pay whole life policy are fully paid, the policy continues to offer protection for the insured’s lifetime, aligning with how whole life policies are structured.