Management Notes

Reference Notes for Management

Which statement is not true regarding a straight life policy

Which statement is not true regarding a straight life policy

Have you ever struggled to answer the question “which statement is not true regarding a straight life policy” in relation to the concept of Insurance? There’s no need to worry about it anymore. This post contains the correct answer to your question.

Which statement is not true regarding a straight life policy

Options:

  • A) It has the lowest annual premium of the three types of Whole Life policies.
  • B) Its premium steadily decreases over time, in response to its growing cash value.
  • C) The face value of the policy is paid to the insured at age 100.
  • D) It usually develops cash value by the end of the third policy year

The Correct Answer Is:

  • B) Its premium steadily decreases over time, in response to its growing cash value.

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