What differentiates a straight life policy from a 20-pay whole life policy?

A straight life policy is characterized by a premium payment period that continues for the entire lifetime of the insured, guaranteeing coverage until death, regardless of how long that may be. In contrast, a 20-pay whole life policy requires the policyholder to pay premiums only for 20 years; after this period, the policy remains in force without further premium payments. This significant distinction in the duration of premium payments is essential for understanding how these policies operate and their financial implications for the policyholder.

The premium payment period influences factors such as cash value accumulation and the total cost of insurance over the insured's lifetime. With a straight life policy, premiums are typically lower on an annual basis since payments extend over a longer timeframe, but the overall cost may be higher compared to the accelerated investment of a 20-pay policy where the premiums are higher for a shorter time but cease after 20 years.

The other aspects—benefit settlement options, face amount, and policy maturity date—are generally more uniform across different whole life policies. Those factors concern how benefits are accessed and the total benefit provided rather than the structure of premium payments, which is the core differentiator between these two types of policies.