Final answer:
Straight Life Insurance, also known as Ordinary Life or Continuous Premium Whole Life, is a cash-value life insurance that provides a death benefit and grows a cash value. Premiums are paid continuously, and the policy has a fixed premium based on the insured's age at issuance.
Step-by-step explanation:
Straight Life Insurance, also known as Ordinary Life or Continuous Premium Whole Life, is a type of cash-value (whole) life insurance policy. One of the key characteristics of this insurance is that it provides a guaranteed death benefit to the beneficiaries upon the death of the insured, provided that premiums are paid continuously. Alongside the death benefit, the policy accumulates a cash value over time, which the policyholder can borrow against or withdraw for their personal use.
This type of policy requires premium payments to be made for the life of the insured or until a certain age, such as 100. The premiums are generally fixed and based on the age of the insured at the time of policy initiation. The cash value is an investment component that grows on a tax-deferred basis and can be a significant asset for the policyholder's financial plans.