Once the term of the policy ends, the coverage also ends, unless the policyholder decides to renew or convert the policy. If the policyholder passes away during the term, the beneficiaries will receive the death benefit. However, if the policyholder outlives the term, there is no payout or coverage provided.
Term life insurance is often chosen by individuals who want coverage for a specific period of time, such as to protect their dependents while they have a mortgage or while their children are young. It tends to be more affordable compared to permanent life insurance policies, which provide coverage for the entire lifetime of the insured.
It's important to note that if you want life insurance coverage to continue beyond the term, you would need to either renew the policy or consider other options like converting to a permanent life insurance policy, if allowed by the terms of your contract. The specifics of renewability or conversion options can vary depending on the insurance company and policy terms, so it's crucial to review the policy documents and consult with your insurance provider for accurate information. Get a life insurance quote now.