Under a 20-pay whole life policy, when must premiums be paid for the policy to pay the death benefit?

A 20-pay whole life policy is designed to provide coverage for the policyholder's lifetime, but with a specific premium payment structure. The correct answer indicates that premiums must be paid for a total of 20 years or until the policyholder's death, whichever occurs first.

This means that while the policyholder is required to make premium payments for 20 years, if the policyholder dies before those 20 years are completed, the death benefit is still paid out, and no further premiums are required. This structure allows for the assurance of coverage without an obligation to pay premiums indefinitely, which might be a burden if the policyholder were to live many years beyond the payment term.

In contrast, other options suggest different endings to the premium payment requirement that aren't correct for a 20-pay policy. Some indicate paying premiums until a certain age or until the policy matures, which doesn't align with the unique structure of 20-pay whole life policies. By understanding this, we see that the focus on both the time limit of the payment period and the condition of death is crucial for grasping how this type of life insurance functions.