PSI Ohio Insurance Practice Exam 2026 – All-in-One Guide to Exam Success

The continuous premium whole life policy is the most common type of premium structure. This type of policy requires the policyholder to pay premiums regularly throughout the lifetime of the insured, which provides lifelong coverage as long as the premiums are paid.

This type of premium allows for stable and predictable costs over time, making it easier for individuals to budget and maintain their insurance coverage. Continuous premium policies are designed to accumulate cash value and provide a death benefit, and since they cover the entire life of the insured, they are appealing for long-term financial planning.

Other premium types, like single premium, limited payment, and flexible premium policies, have their specific uses but are less prevalent compared to the continuous premium structure. Single premium requires a one-time payment for whole life insurance, while limited payment policies allow premiums to be paid for a specified number of years, after which the policy remains in force without further payment. Flexible premium policies, often seen in universal life insurance, allow policyholders to adjust their premium payments and death benefits, providing more adaptability but are less common in traditional whole life insurance policies.