Policy Frameworks
Three coverage structures, read the way underwriters read them
Term life, ACA health tiers and property risk — what each promises to pay, and the conditions attached to that promise.
01 — Term Life
A death benefit for a fixed window, nothing more
Term life pays a stated death benefit if the insured dies within the policy term — commonly 10, 20 or 30 years — in exchange for a level premium locked for that term. There's no cash value; coverage simply ends if the term expires and isn't renewed or converted.
Underwriting Class
Sets the rate
Health, age and lifestyle factors determine which rate class a premium is calculated from.
Conversion Rider
Optional extension
Some policies allow converting to permanent coverage without new medical underwriting.
02 — ACA Health Tiers
Metal tiers trade premium against out-of-pocket share
Marketplace plans are grouped into four metal tiers by actuarial value — roughly the share of average costs the plan is designed to cover. A higher tier means a higher monthly premium and a lower share of costs paid at the point of care.
~60%
Plan covers on average
Lowest premium, highest deductible — suited to low expected utilization.
~70%
Plan covers on average
Baseline tier for income-based subsidy calculations.
~80%
Plan covers on average
Higher premium, lower deductible — fits frequent, predictable care.
~90%
Plan covers on average
Highest premium, lowest cost-sharing at the point of care.
03 — Property Risk
Coverage is written against named perils, not against "damage"
A standard homeowners or renters policy lists specific perils it responds to — fire, wind, theft, certain water damage — and excludes others, most notably flood and earth movement, which require separate policies.
See how these frameworks translate into a real number
Run your premium, deductible and expected claims through the calculator.