Also found in: Dictionary, Thesaurus.
A straight life insurance policy is a type of permanent insurance that provides a guaranteed death benefit and has fixed premiums. This traditional life insurance is sometimes also known as whole life insurance or cash value insurance.
With a straight life policy, a portion of your premium pays for the insurance and the rest accumulates tax deferred in a cash value account.
You may be able to borrow against the cash value, but any amount that you haven't repaid when you die reduces the death benefit.
If you end the policy, you get the cash surrender value back, which is the cash value minus fees and expenses. However, ending the policy means you no longer have life insurance and no death benefit will be paid at your death.