How does the premium for a straight whole life policy compare to a term life policy?

In the context of life insurance, a straight whole life policy typically has a higher premium compared to a term life policy. This is because whole life policies provide coverage for the entirety of the insured's life, coupled with a savings or investment component known as cash value. The premiums are calculated to last for the lifetime of the insured, which involves higher initial and ongoing costs to ensure that the policy remains in force until death, at which point a death benefit is paid out.

On the other hand, term life policies are designed to provide coverage for a specified period, such as 10, 20, or 30 years. They do not accumulate cash value, and once the term expires, the coverage ends without any payout unless the insured dies during the term. This makes term policies less expensive since the insurer is not obligated to pay out a benefit for the insured's entire lifetime and the financial risk is lower.

Given these factors, individuals seeking permanent coverage and additional financial benefits will pay more for a whole life policy, making the premium for such a policy generally higher than that of a term life policy.