Which type of insurance requires premiums to be paid up before age 100, usually resulting in a higher cash value?

The correct answer is limited pay insurance. Limited pay life insurance is designed so that premiums are paid for a specific, shorter period, often up until the insured reaches age 100. Unlike traditional whole life insurance, where premiums are paid for the entire lifetime of the policy, limited pay policies allow the insured to finish premium payments earlier while still maintaining coverage for their entire life.

This structure typically results in a higher cash value accumulation compared to term insurance options because the premium payments are larger and concentrated over a shorter duration. Therefore, policyholders benefit from significant cash value growth that can be accessed during their lifetime.

In contrast, whole life insurance usually requires premium payments throughout the insured's lifetime, while term life insurance provides coverage for a set period without any cash value component. Decreasing term insurance offers coverage with benefits that decline over time and also lacks cash value. These characteristics make limited pay insurance particularly appealing for individuals looking for a balance between investment value and life insurance protection.