Which payment structure does a single premium whole life policy use?

A single premium whole life policy utilizes a payment structure that involves a single, one-time payment made at the inception of the policy. This means that the policyholder pays the entire premium upfront, which then provides lifetime coverage without the need for ongoing payment obligations in the future.

This structure is advantageous for individuals who prefer to make a one-time investment rather than manage multiple payments over time. The single premium not only secures the life insurance coverage but also accumulates cash value that can grow on a tax-deferred basis.

In contrast, the other options suggest various forms of installment payments that would not align with the fundamental concept of a single premium whole life policy. Serial payments, whether monthly, quarterly, or annually, imply an ongoing obligation that is not characteristic of this type of policy.