What Happens If You Do Not Die During Term Life Insurance?

You will have several options to consider when your term policy comes to an end.

You may enjoy the good fortune of outliving your term insurance policy's coverage period. In addition to simply letting the policy expire if you no longer need the coverage, there are some other options to consider.

Considerations

Just because your your term life policy has come to end, it doesn't necessarily mean you no longer have a need for coverage, For example, you might want to leave a larger estate to your spouse upon your death.

Features

One feature of a term life policy is its convertibility. When your policy is coming to an end, you will have the option to convert the plan to a permanent policy, regardless of your health. Thus, you will still be able to maintain coverage if need be.

Warning

If you choose not to take advantage of the convertibility feature, you may have difficulty purchasing life insurance in the future. Because the ability to obtain life insurance depends on factors such as age and health, you might not be eligible for coverage at an affordable premium.

References

• CBSMoneyWatch.com: What Happens When Your Term Life Insurance Runs Out? 3 Tips
• JDPower.com: The Benefits of Term Life Insurance