What characterizes a Straight Life or Continuous Premium policy?

A Straight Life or Continuous Premium policy is characterized by premiums and face amounts that remain level until the insured reaches age 100 or passes away. This means that the policyholder pays the same premium amount throughout their lifetime, and the death benefit is guaranteed to remain constant during that time. The stability in both premiums and the face value provides predictability for policyholders in terms of their financial planning and ensures that beneficiaries have a set amount to receive upon the insured's death.

This structure is central to whole life insurance policies, as it differentiates them from other types of policies that may have variable premiums, decreasing benefits, or limited coverage durations. In contrast to temporary coverage plans, the Straight Life insurance offers lifelong protection and is designed to accumulate cash value over time, adding to its appeal.