Straight Life Insurance (Noun)
Meaning
Insurance on the life of the insured for a fixed amount at a definite premium that is paid each year in the same amount during the entire lifetime of the insured.
Classification
Nouns denoting possession and transfer of possession.
Examples
- Straight life insurance policyholders must pay a level premium every year to maintain coverage for their entire lifetime.
- Only a few insurance companies still offer straight life insurance as this type of policy has become less popular over the years.
- Straight life insurance typically requires the holder to pay the same fixed premium each year for the rest of their life.
- To calculate the amount of death benefit provided by a straight life insurance policy, insurance actuaries will typically analyze the age and life expectancy of the insured.
- Straight life insurance can offer a cost-effective way to ensure that funeral expenses are covered when the policyholder passes away, particularly if purchased at a young age.