What is a characteristic of a straight life policy?

A straight life policy, also known as a whole life insurance policy, is characterized by premiums that are determined based on the policyholder's age at the time of inception and remain fixed for the life of the policy. This means that once the policyholder purchases the insurance, they will pay the same premium amount throughout the duration of the policy, providing a predictable financial commitment.

This feature is advantageous because it allows individuals to plan their finances knowing that their premiums won't fluctuate as they age or as market conditions change. Unlike term insurance, which provides coverage for a specific period and may require renewals with increasing premiums, a straight life policy offers lifelong coverage as long as the premiums are paid.

The other characteristics mentioned, such as increasing premiums, an end of coverage after a certain age, or the absence of cash value accumulation, do not apply to a straight life policy. Instead, this type of insurance not only guarantees a death benefit but also develops cash value over time, which can be accessed or borrowed against by the policyholder if needed.