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Insurance Fundamentals and Logical Reasoning
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QuestionClick to flip
Type of limited payment policy that required only one premium payment?
AnswerClick to flip back
A
Single premium policy
💡 Explanation:
A single premium policy is a type of limited payment life insurance where the entire premium is paid in one lump sum at policy inception. Option B correctly identifies this unique payment structure. Fixed premium policies require regular payments, and 'initial premium' is not a standard policy classification.