What characterizes a Straight Life (Ordinary Whole Life) insurance policy?

A Straight Life (Ordinary Whole Life) insurance policy is characterized by premiums that are level and payable for the lifetime of the insured. This means that the policyholder pays the same amount in premiums each year, ensuring a consistent financial commitment throughout their lifetime. In return, the policy provides a death benefit to beneficiaries upon the insured's passing, and it also accumulates cash value over time.

This type of policy contrasts with others that may have limited premium payment periods or decreasing death benefits. Some policies might only provide coverage for a set term and have no cash value, but a Straight Life policy guarantees lifelong coverage as long as premiums are paid, combining both a savings element and lifelong protection.