What Happens When Your Term Life Insurance Runs Out?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaLike any other insurance policy (except permanent life insurance) a term policy has a start date and an end date. Many term policies will offer renewal after the end of the guaranteed premium period, however the rate increases are usually substantial. If you can qualify for life insurance again, that might be preferable. If you have a permanent need, a permanent life policy might be more appropriate.Answered on September 11, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! Once your term policy ends, you will have one of two things happen. You will either both part ways like you'd never met and done business, as there will be no further obligations on either side - you don't owe them anything, and they owe you nothing. The other alternative is that you decide you want the coverage to last a little longer. In that case, if the policy is renewable, you contact them, and they renew it for another year, at a very healthy premium rate. Each time you decide to renew, they increase at very healthy increases. That continues until you come to your senses, or go broke. I hope that helps, thanks for asking!Answered on September 13, 2014flag this answer
5877 POINTSview profileStan Cox IIInsurance Adviser - Broker, SC Insurance Services, Oahu, HawaiiWhat happens when your Term life Insurance policy "runs out" or expires or lapses is all the same: Nothing. You no longer have any insurance coverage. And since Term insurance has no cash value you don't get any kind of refund or surrender value. The only exception is if you had purchased a "Return of Premium" rider with your policy. I that case you most likely will receive a portion of the premiums paid in returned to you.Answered on September 2, 2015flag this answer
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