What is limited pay insurance?
Limited pay insurance is a type of insurance in which an insurer has to pay premiums over a specified period and the policy will be in force for particular period as stated on policy statement.
In other words, you have to pay premiums 5 to 10 years before the policy expires.

Why should I buy Limited pay Insurance?
Although there are other types of insurance, but some people also tend to buy limited pay insurance because they can afford higher premiums and want to free from liability as soon possible. For instance, your policy encompass next 20 years, and you have paid all premiums required, in its initial 8 years, now you are free from future liability but you will still remain insured.

Another advantage is that, financial poison varies from years to years; it may possible that you are financially strong in next few years but becomes unstable after these years. In such circumstances, buying limited pay insurance is a good and promising idea for the protection of your children or beneficiaries.

Disadvantage:
Major disadvantage for a person with low monthly income happens to be affordability of premiums paid. In this type of insurance you have to pay all premiums over a specific period as specified in your policy agreement. You should not buy this type of insurance, id you can not afford higher premiums. Premiums for limited pay insurance are highest than another type of insurance.

Conclusion:
There are different types of insurance depending upon the buyer’s needs and suitability. One of the good types of insurance is limited pay insurance if you can afford high monthly premium and pay in a specified period of time.