All life insurance has a maturity date. Term insurances expire after a set number of years. You can continue these plans with higher premiums beyond this date, but in most cases this is more expensive than it'a worth.
Whole life and Universal life policies also have a maturity date. Often this is when the person covered by the insurance turns 90 or 121. With these policies, the cash value is then given to the owner of the policy.
All policies end when death occurs. If the policy is in force at the time of death, the policy will pay the face amount at that time.
When you purchase Term Life Insurance, you decide at that time when you want your coverage to end. It corresponds with the number of years in your Term policy. As a rule, the older you are when the policy ends, the higher the premium will be. But you also have to consider that, if you want to purchase a new policy after this one ends, the price on the new policy will be much higher, or you may not be able to qualify for the amount of coverage that you want at that time. So locking in the premium for a long period of time while you are healthy is a good idea, if you need the coverage for a long period of time.
Permanent life insurance ends when the policy matures, at which time you can take the face amount in cash. But most people choose to keep the policy in effect beyond that, until death.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
It usually does. Term life insurance policies often reach the term limit. A policy might have a provision for continuous coverage but the customer cannot afford the coverage. Permanent life insurance policies are more likely to result in a death claim because they are designed to last a lifetime. There are several types of permanent policies and not all have the guarantee of a life time of coverage for a fixed premium.
President, Lane Independent Agency, Southern California
Term life insurance, if paid each month, can continue for decades, but rates will escalate after the set number of years of the term. Whole Life, or cash value life insurance, if paid each month, or if paid from cash accumulation, or if prepaid, will continue until death. Many policies will end at a certain age, usually around age 120, but will then pay the amount of the policy in full, as if death had occurred. You should discuss this with an experience Life Agent. We deal with these issues all the time. Thank you. GARY LANE.
That is an excellent question! Yes, some do, and it can be long before the insured passes away in many cases. Term life insurance policies have a specific end date, that is stated in the contract. There are a few major companies that deal with senior citizens that advertise a life insurance policy for them that ends at the age of 80. But because of the slick advertising, many seniors buy it without understanding what happens if they live to be 80 and a day. Whole life policies will last as long as you do. they have an "endowment age" that is usually 100, or 121 years old, and if you live to be that old, it either pays out the benefit to you, or continues at no cost. It is always best to consult with a trusted agent before purchasing any policy. Thanks for asking!
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
As my colleagues have said, in addition to cost, there is a difference between Term Life policies and Permanent Life policies. With Term policies, one usually purchases a contract for a specified number of years, 10, 15, 20 or 30 for example. Once the specified number of years is up, the policy will lapse unless the insured has exercised a conversion of the coverage to a Permanent form, if that option is available. A Permanent form is a bit different in that they are designed with the idea that the insured will maintain the policy throughout their life. In many cases these will "mature" at age 100 and annuitize.
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Whole life and Universal life policies also have a maturity date. Often this is when the person covered by the insurance turns 90 or 121. With these policies, the cash value is then given to the owner of the policy.
When you purchase Term Life Insurance, you decide at that time when you want your coverage to end. It corresponds with the number of years in your Term policy. As a rule, the older you are when the policy ends, the higher the premium will be. But you also have to consider that, if you want to purchase a new policy after this one ends, the price on the new policy will be much higher, or you may not be able to qualify for the amount of coverage that you want at that time. So locking in the premium for a long period of time while you are healthy is a good idea, if you need the coverage for a long period of time.
Permanent life insurance ends when the policy matures, at which time you can take the face amount in cash. But most people choose to keep the policy in effect beyond that, until death.