Louisiana Series 101 – Life Insurance Practice Exam

Straight Whole Life is classified as which type of policy?

Term Ordinary Endowment Universal

Correct Answer:

Ordinary

Explanation:

Straight Whole Life is a form of Whole Life policy that uses continuous, level premiums paid for the insured’s entire life. This setup keeps the policy in force for life and builds cash value over time, which is why it’s classified as Ordinary life. It’s different from term insurance, which covers a set period and typically has no cash value; from endowment policies, which mature and pay out at a specified age if still in force; and from universal life, which features flexible premiums and a cash value that can vary with interest credits. So the best fit for Straight Whole Life is Ordinary life.

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