Straight Whole Life
Whole life insurance with premiums payable continuously for the insured's entire lifetime, the classic permanent insurance form.
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Practice This Concept
A client purchases a whole life policy with premiums payable for only 20 years, after which the policy is fully paid up and coverage continues for life. This policy is:
A limited-pay (20-pay) whole life policy — A limited-pay whole life policy is permanent insurance whose premiums are concentrated into a limited period — here 20 years — after which the policy is paid up and the death benefit continues for the insured's lifetime. Because premiums are compressed into fewer years, each premium is higher than under straight whole life, where premiums are paid for life. Unlike term, it builds cash value and never expires solely from reaching the end of a term, and unlike annual renewable term, the premium is level and coverage does not end at a set age.
National insurance concept
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