Affordable Life Insurance Protection for Your Family

When Does Life Insurance End?

There are several different reasons the life insurance coverage provided by your insurance policy would end, including the following:

 

  • The Insured Person Dies While Policy Is In Force – If you die while insured, your life insurance coverage ends and the death benefit is paid out to the beneficiary of your life insurance policy, subject to the terms, conditions and exclusions stated in your policy.
  • Term Life Policy Expires – Term life plans usually last for 10-30 years. If the insured is alive when the policy term expires, the coverage ends.
  • You Cancel Your Policy – You may choose to cancel your policy at any time by contacting the insurer and requesting cancellation.
  • The Insurer Cancels Your Policy – If the insurance company finds that you have lied or made a material misrepresentation on your application for coverage, they may cancel the insurance policy.



Insurance Company Cancels Your Policy

 

Usually, a life insurance company can cancel your policy for two reasons


  1. Fraud
  2. Non Payment for Premiums

 

Fraud


Lying or misrepresenting a material fact on your application for life insurance coverage is grounds for cancellation of your insurance policy. 


If there were lies stated on your application for insurance that the insurance carrier did not discover during the application process, your life insurance policy could be cancelled if the insurer becomes of aware of those lies during the first 1 or 2 years of the insurance policy is In Force. 


This period of time is referred to as the Contestability Period


Also, keep in mind, if application fraud is discovered after the insured person dies, the insurance company may refuse to pay out any death benefits on the policy.


Nonpayment of Premiums

 

Your life insurance premiums are due on a specific date, whether it be monthly, quarterly, semi-annual or annual. 

 

After that premium payment due date passes, most insurance carriers allow a 30 day grace period.

 

If you pay your over-due premiums within the grace period, your life insurance policy remains In Force, continuing to provide you with insurance. 

 

However, when the grace period has passed, if the overdue premium payment has not yet been received by the insurance company, the insurer can cancel your policy. 

 

Make sure you set up automatic payments of your life insurance premiums from your bank account or credit card, to protect yourself against cancellation of your life insurance for nonpayment of premiums.


What Happens If I Stop Paying My Life Insurance Premiums?

 

You can cancel your coverage by choosing to stop paying the premiums and the policy will cancel after it lapses.


If you stop paying premiums by the end of the grace period — which is usually 30 days from your insurance premium’s due date — your insurance company will cancel your life insurance coverage.


But if you have a permanent life policy with accumulated cash value, you’ll lose it — so only choose to cancel if you understand you will lose that money that has built up inside your policy. 


When Does Life Insurance Coverage End?

 

If you are buying a life insurance policy, this is a very important question to answer before choosing the right plan to meet your specific needs.

 

Choosing the right type of life insurance policy is important because the two basic types of plans have some very big differences, especially as to how long they provide insurance protection – When your coverage ends.

 

The two basic types of life insurance are Permanent and Term.

 

Permanent Life Insurance

 

As long as you pay your insurance premiums on time, permanent life insurance policies do not expire.

 

Your coverage lasts for your entire lifetime.

 

However, some permanent policies may end between ages 100 to 121.

 

Term Life Insurance

 

This is temporary coverage that provides you with life insurance protection for a specific period of time, usually for thirty years, or less.

 

For example, you may be able to choose a "Policy Term" (duration) of 10, 15, 20, 25 or 30 years for term life coverage.

 

If you die during the Policy Term, your beneficiary receives the death benefit payout from the insurance company.

 

If you are alive when the term expires, the coverage ends with no payout of any benefits.

 

Does Term Life Insurance Have An End Date?

 

Yes. Term insurance coverage ends at the end of the Policy Term stated in your insurance policy. The End Date is determined when you purchase your plan. 

 

Term life plans usually provide coverage ranging from five to thirty years and issued in five-year increments; such as, 5, 10, 15, 20, 25 or 30 years of protection.

 

However, Annual Renewable Term life plans expire at the end of the year, if they are not Renewed.

 

What Happens After A Term Insurance Policy Ends?

 

Unlike permanent coverage, term insurance policies don't have any cash value inside the policy.


So when your life insurance coverage expires, your insurance protection has ended -- and even though you've been paying premiums to the insurer for 10 or 15 years, there's no residual cash value that has built up inside the policy.


If you want to continue to have coverage, you would have to apply for new life insurance policy.

 

Generally, when a term insurance policy expires, the policy ends and no action needs to be taken by the policyholder. The coverage no longer exists.

 

The insurance company will usually mail a written notice to the owner of the life policy stating the policy is no longer In Effect, the policyholder stops paying the premiums, and there is no longer any death benefit available from the expired term life policy.

 

What's the Longest Term for a Temporary Life Insurance Policy?

 

A 30 year term provides the longest coverage available for term life insurance. 

 

By selecting for a thirty-year term policy , you can lock-in a lower premium while you are younger and healthy. The premium which will continue to remain the same for 30 years, regardless of any change in your health.

 

Does Life Insurance End At A Certain Age?


It depends on the type of insurance plan you own. 


If you have a term (temporary) policy, your insurance coverage will expire when the policy term you selected ends. For example, at the end of 10 years, if you purchased a ten year term policy. It would be the 10 year anniversary date of the day your policy started.


If you have a permanent (lifetime) policy, your coverage will remain In Force for as long as you continue to pay your insurance premiums on time.


NOTE: Some term life policies do not expire until you reach age 95. 

 

Even though you may have a 20-year term policy, your coverage will not end after twenty years. You may be able to continue your coverage, but with premiums that increase each year after your original Policy Term has expired. 

 

So, you would pay level premiums each year for 20 years, then you pay an annual increasing premium each year thereafter, if you wish to continue your coverage.

 

Does Life Insurance Coverage Ever Expire?

 

Not all life insurance policies expire, but term insurance expires at a set date. The term period is set when you purchase the policy and typically lasts for 10, 15, 20, 25, or 30 years of coverage.

 

What Type of Life Insurance Plan Never Ends?

 

Permanent (lifetime) life insurance refers to coverage that never expires, unlike term life insurance, and combines a death benefit with a savings component.


Whereas, term policies only provide a death benefit.


Does Your Life Insurance End When You Quit?

 

If you have a life insurance policy through your job, you may lose your coverage if you leave that job.


These plans are usually employer provided Group term life insurance plans. Coverage is renewed each year through the Employer’s Group program.


If you get fired, quit, or your company goes out of business, you may lose your insurance. 


If you still need coverage,  you’ll need to apply for new policy (either at your new job or independently from a life company or broker) based on your current age and health status.

 

Life Insurance Quotes

 

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When Does Life Insurance End?


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