What type of policy requires the policyholder to pay premiums for a specified period and then becomes paid-up for life?

The correct answer is whole life insurance, which is designed to provide coverage for the lifetime of the insured. This type of policy typically requires the policyholder to pay premiums for a specified period—often until they reach a certain age or for a certain number of years. Once this premium payment period is completed, the policy becomes "paid-up," meaning that no further premium payments are required, yet the policy continues to provide coverage for the insured's entire life. Additionally, whole life insurance accumulates cash value over time, which can be accessed by the policyholder.

In contrast, term life insurance provides coverage for a specified term or period and does not accumulate cash value; it ends when the term expires unless renewed. Universal life insurance offers flexible premium payments and can also accumulate cash value but does not automatically become paid-up for life after a selected period. An endowment policy, while it does pay out a sum upon maturity or death, typically combines features of whole life and term but does not fit the description of becoming paid-up for life in the same way. Therefore, whole life insurance is the only option that aligns with the provided definition.