Of the following, which best describes a Straight Whole Life policy?

• A. Level guaranteed premium and face value for the life of the insured
• B. Premiums increase with age but face value remains the same
• C. It provides term coverage with level premiums
• D. Premiums remain constant but the face value decreases over time

Answer: (A)

Straight Whole Life is a permanent life policy where the premium is fixed for the insured’s lifetime and the death benefit (face value) stays level for life. This means you pay the same premium from issue onward, and the face amount doesn’t decrease as time goes on. The policy also builds cash value over time.

That makes the best description: a level guaranteed premium and a level face value for the life of the insured. The other scenarios describe different product features: increasing premiums with age isn’t characteristic of Straight Whole Life; term coverage with level premiums is a term policy, not permanent; and premiums that stay constant while the face value decreases describe decreasing term, not straight whole life.