What is the payment structure of a single premium whole life policy?

A single premium whole life policy is designed to be funded by a one-time, lump-sum payment. This means that when the policyholder purchases the policy, they pay the entire premium amount upfront instead of making continuous or periodic payments over time.

This payment structure offers several advantages, such as providing immediate death benefit coverage and the potential for cash value accumulation from the outset. Since the policy is fully funded at the beginning, it does not require ongoing payments, which simplifies the management of the insurance policy for the policyholder. Additionally, the policy remains in force for the insured's lifetime as long as the premium is fully paid in the beginning.

The other payment structures, such as annual payments, increasing payments, or payments over a fixed term, would not apply to a single premium whole life policy, as they typically characterize other types of life insurance policies or payment arrangements.