Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
It depends on the type. If you have term insurance, then yes. If you have permanent insurance, then no.
Term insurance keeps the premiums fixed and guaranteed for a specific number of years (e.g. 10, 15, 20, 25, or 30 years). After the term period has expired, the premiums change to annual renewable term insurance and increase each year (based on age). You can elect to continue the existing term insurance policy up until age 95 (with most policies), however, the price to keep that policy in force becomes astronomical and you would never pay it past the first couple of years. Most people replace a term insurance policy with a new term or permanent policy.
Permanent insurance is designed to cover you for the rest of your life. The only way a permanent insurance can expire early is if it's "dialed down" - meaning the death benefit is designed to only go to a specific age/policy year (e.g. dialed down to age 90). Dialing down a policy can be useful to reduce your premiums, but still provide good coverage longetivity.
I hope the input helps. Please feel free to contact me for help and if you have any other questions. Thanks very much.
All life insurance expires it is just a matter of when. Term life insurance is purchased by the expiration date. Term can be purchased by level premiums for 5-10-15-20-25-30-35 years. Technically term life insurance will not expire on that date but the premiums will increase drastically in most cases ten fold and expire around age 80 or 85.
On permanent life insurance or cash value life insurance, the expiration is determined by the level of premium. On a whole life or universal life you have different levels of premium known as minimum, target and maximum. The target premium can be set for a certain age. Most common is age 95 or age 100. There are several companies that will allow the target to be adjusted to an age range of 105 to 150 years old. Which it would be a miracle to live past age 150, but if one did, the policy would expire.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance is designed to either expire or endow. When it endows the surrender value and the face amount are equal. That can happen after a specified number of years or upon reaching a specified age. Term insurance terminates. Even term policies that allow you to renew, do so only to a specified age. After that they cease altogether.
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Term insurance keeps the premiums fixed and guaranteed for a specific number of years (e.g. 10, 15, 20, 25, or 30 years). After the term period has expired, the premiums change to annual renewable term insurance and increase each year (based on age). You can elect to continue the existing term insurance policy up until age 95 (with most policies), however, the price to keep that policy in force becomes astronomical and you would never pay it past the first couple of years. Most people replace a term insurance policy with a new term or permanent policy.
Permanent insurance is designed to cover you for the rest of your life. The only way a permanent insurance can expire early is if it's "dialed down" - meaning the death benefit is designed to only go to a specific age/policy year (e.g. dialed down to age 90). Dialing down a policy can be useful to reduce your premiums, but still provide good coverage longetivity.
I hope the input helps. Please feel free to contact me for help and if you have any other questions. Thanks very much.
On permanent life insurance or cash value life insurance, the expiration is determined by the level of premium. On a whole life or universal life you have different levels of premium known as minimum, target and maximum. The target premium can be set for a certain age. Most common is age 95 or age 100. There are several companies that will allow the target to be adjusted to an age range of 105 to 150 years old. Which it would be a miracle to live past age 150, but if one did, the policy would expire.