What defines a straight life insurance policy?

A straight life insurance policy, also known as whole life insurance, is characterized by providing coverage for the lifetime of the insured, up to a specified age, commonly 100. One of the defining features is that it accumulates cash value and remains in force as long as premiums are paid. This means that the policy delivers a death benefit upon the insured’s death, which is often guaranteed as long as the policy remains active.

Additionally, this type of policy is designed to have lower annual premiums than other forms of permanent life insurance that might offer more substantial immediate benefits. While policyowners do have the option to stop paying premiums, it is the longevity and guaranteed coverage until death or a specified age that sets straight life policies apart in the broader context of life insurance products.