Life Insurance can run out when the guaranteed period of the term life insurance contract is completed. The policy can also lapse because of poor performance, increase policy expenses and nonpayment of premium. Life insurance can run out if current company practice items like the cost of insurance rates are raised to maximum contractual rates.
Life insurance can run out, expire, endow or become so expensive one cannot afford it. You and your agent determine this time period at point of application.
For example, if you purchase term life insurance you may purchase the face amount for a certain time period. Some of the most common are 10 years, 20 years or 30 years, even though there are many other time periods. Usually the policy will not expire yet the premiums will increase several times.
If you purchase a cash value life insurance policy such as whole life or universal life the premiums are based on the age in which you would like the policy to endow. Some popular age calculations are age 95, 100, 121 or 151.
Just realize you control these limits not the life insurance company. Purchase your life insurance policy wisely.
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For example, if you purchase term life insurance you may purchase the face amount for a certain time period. Some of the most common are 10 years, 20 years or 30 years, even though there are many other time periods. Usually the policy will not expire yet the premiums will increase several times.
If you purchase a cash value life insurance policy such as whole life or universal life the premiums are based on the age in which you would like the policy to endow. Some popular age calculations are age 95, 100, 121 or 151.
Just realize you control these limits not the life insurance company. Purchase your life insurance policy wisely.