Which of the following is TRUE of a limited pay whole life policy?

A limited pay whole life policy is designed to provide coverage for the insured's entire life, but the premiums are paid for a specified shorter duration, after which the policy becomes "paid-up." This means that once the premium payments are completed, the insurance coverage continues without the need for any further payments. This characteristic ensures that the policyholder does not have to worry about paying premiums throughout their entire life, while still enjoying the benefits of lifelong coverage.

The notion that coverage continues after the policy is paid-up is fundamental to the structure of a limited pay whole life policy, reinforcing its appeal among those who wish to secure lifelong insurance protection while limiting the duration of premium payments.