{"id":450,"date":"2010-07-31T19:29:29","date_gmt":"2010-08-01T02:29:29","guid":{"rendered":"https:\/\/maysfinancial.local\/"},"modified":"2017-02-26T02:02:04","modified_gmt":"2017-02-26T02:02:04","slug":"options-features-term-policies","status":"publish","type":"post","link":"https:\/\/maysfinancial.local\/articles\/options-features-term-policies\/","title":{"rendered":"Understand Options and Features of Term Policies"},"content":{"rendered":"<p>Term life insurance policies can vary greatly depending on which options and features are selected. \u00a0This <strong>allows the ability to customize a policy depending on the specific needs of the individual or family.<\/strong> Below are some of the more common options and features. \u00a0Keep in mind that <strong>options and features may vary from company to company.<!--more--><\/strong><\/p>\n<h5><strong>Guaranteed Renewability<\/strong><\/h5>\n<p>Some term insurance policies offer guaranteed renewability. \u00a0This feature <span style=\"font-weight: bold;\">allows the policyholder to renew their term policy at expiration without proving insurability.<\/span> Renewability is <span style=\"font-weight: bold;\">typically limited to the same term as the original policy<\/span> (i.e. a 10 year policy can be renewed for another 10 years) and is <span style=\"font-weight: bold;\">typically limited to around age 65.<\/span> Beyond the age limit, the ability to automatically renew no longer exists and the policyholder may have to prove insurability or meet certain other criteria. \u00a0<strong>Though a policy is guaranteed renewable, remember that the premium will increase in order to reflect the increased expected costs.<\/strong><\/p>\n<h5><strong>Convertible Term<\/strong><\/h5>\n<p>The feature basically <span style=\"font-weight: bold;\">allows a policyholder to convert their term policy into some sort of permanent policy without proving insurability.<\/span> This option can allow for much flexibility as circumstances change.<\/p>\n<h5><strong>Level Term<\/strong><\/h5>\n<p>Level term policies <span style=\"font-weight: bold;\">fix both the face value of the policy as well as the premium payment over the life of the policy.<\/span> Typically, as age increases, so do premiums. With level term policies these increases are anticipated and accounted for. \u00a0Though the policyholder will pay more that the cost of coverage early in the policy, as time passes the insured will continue to pay the same premium even as the cost of coverage surpasses the premium payment.<\/p>\n<h5><strong>Decreasing Term<\/strong><\/h5>\n<p>A decreasing term policy is a type of level term policy. \u00a0The <span style=\"font-weight: bold;\">face value of the policy decreases until it eventually expires at a predetermined date.<\/span> This type of policy is<span style=\"font-weight: bold;\"> typically used to meet temporary needs that require decreasing amounts of capital to satisfy.<\/span> A mortgage is an example of a need that a type of decreasing term policy, a <span style=\"font-weight: bold;\">mortgage redemption policy<\/span>, can be used for. The policy is written to cover the amount due on the mortgage. As payments are made and the mortgage balance decreases, the face value of the decreasing policy will decrease.<\/p>\n<h5><strong>Family Income Policy<\/strong><\/h5>\n<p>Family income policies combine decreasing term policies with a permanent insurance policy in that the term insurance will typically pay out as a percentage of the permanent policy coverage.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Term life insurance policies can vary greatly depending on which options and features are selected. \u00a0This allows the ability to customize a policy depending on the specific needs of the individual or family. Below are some of the more common options and features. \u00a0Keep in mind that options and features may vary from company to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,8,11],"tags":[149,161,162],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/450"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=450"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}