Which statement describes straight life (continuous premium) policy?

• A. The premium increases with age and the policy ends at death.
• B. The policy requires a single lump-sum payment at issue.
• C. The premium is paid for a fixed term, after which coverage ends.
• D. The policy owner pays the same annual premium until the insured dies or reaches age 100.

Answer: (D)

In straight life (continuous premium) whole life, the premium is level and paid for the insured’s entire life. The amount doesn’t increase as the insured ages, and the coverage remains in force from issue for life, with the death benefit staying level. The policy typically ends when the insured dies or at a specified age (often age 100) if the contract matures then. This is why the description that the owner pays the same annual premium until death or reaching age 100 fits straight life best. It contrasts with paying a single lump sum (single premium), paying premiums for a fixed term (term or limited-pay policies), or premiums that rise with age.