Does life insurance expire?
Does Life Insurance Expire?
An essential instrument for financial security, life insurance pays out a death benefit to your dependents if you die away. Do life insurance policies expire, though? The sort of policy you have will determine the response.
Term Life Insurance:
Term life insurance policies have a specified term, typically ranging from 10 to 30 years. These policies expire at the end of the term, and if you die after the term has ended, there is no death benefit paid out. However, some term life insurance policies offer:
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Renewal Options: Allow you to renew your policy for another term without having to requalify.
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Conversion Options: Enable you to convert your term life insurance policy to a permanent policy.
Permanent Life Insurance:
Permanent life insurance policies, such as whole life and universal life insurance, do not expire. These policies remain in force for your entire lifetime, as long as premiums are paid. Permanent life insurance policies often accumulate a cash value over time, which you can borrow against or withdraw.
What Happens When Life Insurance Expires?
If your term life insurance policy expires:
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No Death Benefit: There is no death benefit paid out if you die after the policy has expired.
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No Coverage: You are no longer covered by the policy.
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Option to Renew or Convert: Depending on your policy, you may have the option to renew or convert your policy.
Life insurance expiration depends on the type of policy you have. Term life insurance policies expire at the end of the term, while permanent life insurance policies remain in force for your entire lifetime. It’s essential to understand your policy’s terms and conditions to ensure you have the coverage you need.
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