What does a 20-pay life policy provide?

A 20-pay life policy is designed to provide lifetime life insurance coverage while allowing the policyholder to pay premiums for a limited time—specifically, 20 years. After the 20-year period of premium payments, the policy is considered "paid-up," which means that the policy remains in force for the insured's lifetime without the need for further payments.

This type of policy is appealing because it combines lifelong protection with a defined period for premium contributions, making it easier for individuals to budget their insurance costs. After 20 years, policyholders can benefit from the coverage without the financial burden of ongoing premiums. This structure distinguishes the 20-pay life policy from other options that may not offer the same long-term protection for a limited payment period.