Affordable Life Insurance Protection for Your Family
If you are shopping for a term life policy or already own term life insurance coverage, you may be wondering What Happens When My Term Life Insurance Policy Expires?
It’s a very important question, and the answer should help you better understand the options available to you when the time comes. Better to be prepared and plan ahead.
At the end of your Policy Term, your life insurance coverage will end, and you no longer make any premium payments to the insurance company.
If you outlive the duration of your term life policy, you do not receive any money back, there is no pay out of any benefits.
The premiums from individuals who don’t die while their policies are in force ultimately support the payouts that insurance companies can pay to those who do pass away during the life of their term coverage.
When Does Term Life Insurance Expire?
A term insurance policy ends at the end of the policy term you choose when you take out your coverage.
Your coverage term starting date and expiration date are stated on the declaration page of your life insurance policy.
Term Policy Expiration Example:
If you purchase a 10-year term life policy, that starts coverage at 12:01 am on June 1, 2015 – then the coverage will end at 12:01 am on June 1, 2025.
Make sure to review your insurance contract (policy) for your exact expiration of coverage and ask your insurance agent, broker or insurance carrier about any questions you have regarding when your coverage ends.
What to Do When Your Term Life Insurance Policy Expires
You’ll have at least a few options available to you when the time comes for your term coverage to end.
However, make sure you keep in mind the chance that your health may change over time, and you may become uninsurable before your current term insurance plan expires.
So, purchasing a new policy down the road at expiration may be costly, if you are able to qualify for new life insurance at that time.
Options at Expiration of Your Term Insurance Policy
Term Life Insurance Quotes
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What Happens at the End of a Term Life Insurance Policy?
Disclosure: Compensated Affiliate