Common term lengths include 10, 15, 20, 25, or 30 years. Once the term is over, the coverage provided by the policy ends, and the insurance company is no longer obligated to pay out a death benefit if the insured person passes away after the term has expired.
It's important to note that term life insurance is different from permanent life insurance (such as whole life or universal life insurance), which provides coverage for the entire lifetime of the insured person as long as premiums are paid.
Term life insurance is generally more affordable than permanent life insurance but does not offer the same long-term coverage.
When considering term life insurance, individuals often choose a term length that aligns with their financial responsibilities and needs, such as the years when their dependents are most financially vulnerable (e.g., when children are young or a mortgage is being paid off).
Once the term expires, policyholders can choose to renew their policy, convert it to a permanent policy, or let it lapse. Renewal and conversion options, as well as premiums, can vary based on the insurance company and the terms of the policy.
Learn more about when term life insurance expires.