Does Term Life Insurance Expire?

Term Life Insurance provides financial protection for families and others.

Term life insurance is a type of life insurance that provides protection for a specific term or number of years. Though term life insurance expires after that period, this type of insurance is useful in many situations.

Term Life Insurance Protection

Term life insurance provides financial security for families or others for a specific number of years. People often purchase term life insurance to cover a family's expenses until children become adults, they pay off a home mortgage or other financial needs have passed, according to CNN Money.

Term Life Insurance Coverage

Term life insurance pays out a death benefit for the covered person for a specific number of years. Insurance companies sell term life insurance policies for periods of 10, 15, 20 or 30 years, says Insure.com, though terms offered by insurers will vary. After this term expires, no insurance is in place.

Term Life Insurance Advantages

The primary advantage of term life insurance is that it is the least expensive form of life insurance. Depending on the options offered by the insurance company, you may be able to extend term life insurance beyond the original term, or convert it to whole life, or other forms of life insurance.

References

• Insure.com: Life Insurance, Life Insurance Basics, The basics of term life insurance
• CNNMoney.com: Magazines, Money Magazine, Money 101, Lesson 20, Index 5