Great question! Your policy will expire after the number of years the policy states as the term. Most are written for a term period of between 5 and 30 years, and end when that term is up. Some policies, like those offered on TV and like the ones you receive in the mail, will end when you turn 80. Those policies will also typically increase in price every few years. Take a look at your policy, it will very clearly state in the first few pages the expiration date of your policy. You can renew the policy so that it extends, but be aware that the price of it will go up dramatically. If you need help, please feel free to contact me, I'm happy to help. Thanks for asking!
President, Lane Independent Agency, Southern California
The answer depends on what you bought. Term is bought for a specific number of years, unlike whole life, which is for your lifetime. So long as you pay the premium, term will not expire until you reach the end of the period you bought it for. For example, ten year term expires ten years after you buy it, so long as you pay the premiums. If you do not replace term before it expires, either with more term, or with whole life, you will be left with no life insurance. Thank you. GARY LANE
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
It generally does not expire at an exact age and most people wont keep a term policy past the term premium guarantee period.
The premium guarantee period on a traditional term life insurance policy will last until your term period expires (e.g. if you have a 30 year term policy, the premium will remain fixed and guaranteed for 30 years). When the term period expires, the policy changes to annual renewable term insurance and the premium will increase each year (based on age) - this can generally be continued up to age 95 on most policies. However, the premiums that would be needed to continue the coverage will be SUBSTANTIALLY higher than what you were paying before and will only go up and up.
Term policies on a UL chassis may keep the premiums the same past the term guarantee period, but rather than the premium increasing, the death benefit will decrease each year - can vary by company.
Another type of term insurance is banded coverage - meaning premiums will increase every 5 years as you hit the next age bracket. These are generally term insurance to a specific age - generally up to either 80 or 90.
If you live past the designated max age, the coverage will cease immediately (if kept that long) - supplementing your term coverage with permanent coverage can be of great value.
In Canada, you have a full range of term policies including term to 100.
Many term insurance policies renew and the premiums increase after 5,10, 20, 30 years depending on the contract. It is important to check the guaranteed renewal rates when comparing policies as they can vary greatly.
While the policy actually expires again depends on the terms of the contract most do end at age 85. From a practical standpoint, the renewal rates in the later years are usually prohibitive so conversions to a permanent level premium plan should be considered. Usually the conversion has to take place before age 65, but again varies by contract.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The expiration of coverage is stated in a term policy. Many have provisions for continuous renewal to ages past 80. The premiums for these renewals are listed in the policy and will stagger the imagination. Few term policies end in death claims. Most term policies expire before the insured.
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The premium guarantee period on a traditional term life insurance policy will last until your term period expires (e.g. if you have a 30 year term policy, the premium will remain fixed and guaranteed for 30 years). When the term period expires, the policy changes to annual renewable term insurance and the premium will increase each year (based on age) - this can generally be continued up to age 95 on most policies. However, the premiums that would be needed to continue the coverage will be SUBSTANTIALLY higher than what you were paying before and will only go up and up.
Term policies on a UL chassis may keep the premiums the same past the term guarantee period, but rather than the premium increasing, the death benefit will decrease each year - can vary by company.
Another type of term insurance is banded coverage - meaning premiums will increase every 5 years as you hit the next age bracket. These are generally term insurance to a specific age - generally up to either 80 or 90.
If you live past the designated max age, the coverage will cease immediately (if kept that long) - supplementing your term coverage with permanent coverage can be of great value.
Many term insurance policies renew and the premiums increase after 5,10, 20, 30 years depending on the contract. It is important to check the guaranteed renewal rates when comparing policies as they can vary greatly.
While the policy actually expires again depends on the terms of the contract most do end at age 85. From a practical standpoint, the renewal rates in the later years are usually prohibitive so conversions to a permanent level premium plan should be considered. Usually the conversion has to take place before age 65, but again varies by contract.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.