N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?

The most suitable option for N, considering his goal of having a life insurance policy with level premiums, permanent protection, and being paid-up at retirement, is a 30 pay life policy.

A 30 pay life policy offers permanent coverage, meaning that as long as premiums are paid, the policy remains in force throughout N's lifetime. The "30 pay" aspect indicates that N would pay premiums for 30 years, which would coincide with his current age of 40, allowing him to fully pay for the policy by age 70, the age at which he wishes to retire. This aligns perfectly with his desire to have the policy paid-up when he retires, meaning he will no longer need to make premium payments after that point.

In contrast, a 20 pay life policy would require N to pay premiums for 20 years, which would also provide permanent coverage but would not fully align with his requirement of being paid-up by the time he retires at age 70 since he would stop paying at 60.

Term life insurance is typically not a suitable option for someone looking for permanent protection, as it only provides coverage for a specific term and doesn’t build cash value. Similarly, universal life insurance is a flexible permanent policy, but