What does a single premium policy require?

A single premium policy is a type of insurance policy that requires only one premium payment at the time of purchase, which provides coverage for the life of the policy without any further required payments. This means that once the policyholder makes that initial premium payment, the policy remains in force for the agreed term or until a specified event (like the death of the insured in some life insurance policies) occurs.

Choosing this option accurately represents the essence of a single premium policy, distinguishing it from other insurance products that may require ongoing premium payments, such as annual, semi-annual, or monthly plans. The other options either misrepresent the nature of what a single premium policy entails or introduce irrelevant restrictions that do not apply to this type of policy.