straight life insurance
Definition
Noun: A type of permanent life insurance policy that provides coverage for the entire lifetime of the insured person. It is characterized by a fixed death benefit and a fixed premium amount that is paid annually and remains the same for the life of the policy.
Usage
This term is used in the context of finance, insurance, and personal planning. It specifically refers to a traditional, whole life insurance product with unchanging premiums and a guaranteed benefit.
Examples
- The financial advisor recommended straight life insurance for its guaranteed lifetime coverage and stable premiums.
- With straight life insurance, the premium you pay at age 30 will be the same amount you pay at age 80.
- Unlike term life insurance, straight life insurance accumulates cash value over time.
Advanced Usage
- "to purchase straight life insurance": to buy this specific type of permanent coverage.
- They decided to purchase straight life insurance to ensure their family's financial security regardless of how long they lived.
Variants and Related Words
- Whole life insurance: A more common synonym for straight life insurance.
- Ordinary life insurance: Another term often used interchangeably with straight life insurance.
- Term life insurance: A different, temporary type of life insurance that provides coverage for a specific period (e.g., 20 years) and does not accumulate cash value.
Synonyms
- Whole life insurance
- Ordinary life insurance
- Permanent life insurance (a broader category that includes straight life insurance)
Related Phrases
- Cash value: The savings component of a straight life insurance policy that grows over time.
- Fixed premium: The unchanging annual payment characteristic of a straight life insurance policy.
- Death benefit: The guaranteed amount paid to beneficiaries upon the death of the insured, which is fixed in a straight life insurance policy.
Noun
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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
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