When your life insurance policy expires, your insurance coverage will also come to an end. Depending on the type of policy you have, your insurance provider may offer a range of options with regards to when your policy expires.
For example, a term life insurance policy is designed to cover an individual for a set period of time, such as 10 or 20 years. At the end of that period, the policy will expire and no longer be valid. However, some term policies do include the option of renewal at the end of the term via a conversion clause.
Similarly, a permanent life insurance policy is designed to provide coverage for your entire life. As long as the policyholder pays their premiums and the policy does not lapse, their coverage should remain valid. When the policyholder passes away, the policy will expire and the death benefit will be paid out to their named beneficiaries.
In some cases, life insurance policies will also have a cash value component, such as with policies like Whole Life. This cash value portion of a policy can be used while the policyholder is still alive. However, when the policyholder passes away, this cash value would be included with the death benefit and paid out to the beneficiaries.
It is important to familiarize yourself with the type of policy you have and understand the details of the coverage, including when the policy will expire. Understanding the expiration date of your policy and what the policy entails at the end of the period is crucial for ensuring you are adequately covered throughout your lifetime.
For more information about life insurance policy expiration, you can visit this helpful resource from the National Association of Insurance Commissioners:
https://eapps.naic.org/life-consumer/e-o-life.html#what-happens-when-my-policy-expires
