Which of the following settlement options in life insurance is known as straight life
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What insurance product is also called straight life insurance?Straight life insurance is more commonly known as whole life insurance. While more expensive than term life insurance, straight life insurance offers the opportunity to build cash value — similar to a savings account — that you can borrow against or take out as a loan.
What does straight mean in straight life insurance?Straight refers to the premium structure of the whole life insurance policy. This terminology denotes that premiums for the plan will be level, meaning they will not increase or decrease during the life of the policy. For example, you could have a $100,000 straight life insurance policy for which you pay $30 a month.
What are the settlement options in life insurance?6 Life Insurance Settlement Options You Should Know. Lump-sum payment. Lump-sum payment is the simplest and most common insurance type of life insurance settlement. ... . Interest only. ... . Interest accumulation. ... . Fixed period. ... . Fixed amount. ... . Life income (also known as life-only or life annuity). What is a fixed settlement option?Definition of fixed-amount settlement option
choice of beneficiary in which the death benefit of a life insurance policy is retained by the company to be paid as a series of installments of fixed dollar amounts per installment until the death benefit and interest are exhausted.
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