Straight Life Insurance
Definition - What does Straight Life Insurance mean?
Straight life insurance is a type of permanent life insurance policy that has a guaranteed death benefit and fixed premiums. As long as the insured keeps paying their monthly premium, this type of policy does not expire.
It is also known as ordinary life insurance or whole life insurance.
Insuranceopedia explains Straight Life Insurance
Some straight life insurance policies also build cash value. This is money that an insured can take out of their policy and spend while they are still alive, though doing so lowers the death benefit paid to their heirs.
Straight life insurance policies are more expensive than term policies for the same death benefit. That’s because straight life policies do not to expire so there is a much higher chance that the insurance company has to pay. These types of policies can be useful for permanent life insurance needs that never go away, like leaving an inheritance or paying funeral costs.