Pennsylvania Life and Health Insurance Exam Practice Question
Which of the following is a characteristic of a straight life policy?
Correct Answer: C
Rationale: A straight life policy provides lifelong coverage, typically until age 100, with level premiums that remain constant throughout the policy's duration. This ensures that policyholders have predictable costs and continuous protection.
Option A, limited premium payments, is incorrect as straight life policies require premiums to be paid for the duration of the policy, not for a limited time. Option B, protection until age 65, is misleading; straight life policies offer coverage beyond age 65. Option D, increasing face amount each year, does not apply to straight life policies, which maintain a fixed death benefit. Thus, option C accurately describes the key features of a straight life policy.
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