When discussing options for life insurance with families, one question we hear often is “do life insurance policies expire?”.
The short answer is, yes, life insurance policies can expire. Depending on the kind of policy you have, it may or may not have an expiration date. Term life insurance policies expire when the term you select ends. Permanent life insurance plans (such as whole or universal) continue for your entire life as long as you make timely premium payments in full.
To explore the concept of life insurance policy expiration, let’s discuss the different types of life insurance, and what you need to know to keep your coverage in force.
There are two primary categories of life insurance: term life insurance and permanent life insurance.
When a term life insurance policy ends, the coverage provided by the policy also ceases. If the insured individual passes away after the policy has expired, no death benefit will be paid to the beneficiaries. However, if you still need life insurance coverage after your term policy expires, you have several options:
Renew your policy: Some term policies include a guaranteed renewability clause that permits you to continue having your insurance coverage as long as you keep paying the premiums after the initial term ends. Keep in mind that depending on your age, your premiums will probably increase every year, possibly significantly, you won’t usually be required to undergo another physical.
Convert your policy: Some term life insurance plans offer the option of converting to permanent coverage. This option is usually more expensive than renewing your policy but may be worth considering if you want lifelong coverage. Be sure to familiarize yourself with the conditions of converting your policy so you don’t miss the date of conversion.
Buy a new policy: If you’re in reasonably good health, you may be able to find an affordable policy. Some insurance companies write policies for applicants up to age 85. We do have policies for individuals with significant medical challenges as well.
Whole life or permanent life insurance policies typically do not have an expiration date as long as premiums are paid on time. Here are some important points to consider:
You should take the following actions to prevent your life insurance policy from prematurely expiring:
Understanding your specific policy’s details and staying in contact with your insurer is crucial to ensure that your life insurance coverage remains in force, providing the financial security your loved ones deserve. Communicating with your life insurance specialist is key to making sure your coverage will be there for your family when they need it most.