What does a straight life insurance policy offer?

A straight life insurance policy, also known as whole life insurance, provides a death benefit to the policyholder's beneficiaries upon the insured's death and includes permanent coverage for the lifetime of the insured. One of the key features of a straight life insurance policy is that it offers a lower premium rate compared to other forms of permanent coverage when considering the lifelong benefit it provides. Since the policy is designed to remain in force throughout the policyholder's life, it allows for financial planning that factors in lifelong protection.

This type of insurance usually builds cash value over time, which can be a significant advantage as it provides a savings component alongside the death benefit. The fixed premium is designed to remain constant for the duration of the policy, making it an appealing option for individuals seeking stability in their insurance costs. In contrast, flexible premiums refer to adjustable life insurance policies, whereas investment in stocks pertains to variable life insurance, which has a different structure and purpose. Short-term coverage would not apply to a straight life policy, which is fundamentally designed to provide lifelong protection. Therefore, the essence of option B accurately captures the nature of a straight life insurance policy in the context of permanent coverage.