There are generally two types of life insurance. One is term life insurance, which covers you for a specific term, while the other is permanent life insurance which covers you for your entire life. If you have a term life insurance policy, it will end at some point. Read this article to learn what you should do when your term life insurance ends.
What Is Life Insurance?
Life insurance provides the insured with coverage that pays out a substantial amount of money if they die. The money goes to a beneficiary, which is a person who has been chosen by the policyholder to receive money in the case the insured dies.
What Is Term Life Insurance?
Term life insurance is a type of life insurance that only covers the insured for a specific term or time period. When you purchase a term life plan, you only purchase it for a set period. You’ll pay premiums throughout the term, and if you die during that time, your family receives the death benefit.
What If My Term Life Insurance Is Ending?
If you still need life insurance when your policy expires, there are options. For example, many term life plans allow you to convert to a permanent life insurance policy at the end of your term. If your plan doesn’t offer that option, you can also buy a new policy at a lower coverage amount.
How Do I Know If I Still Need Life Insurance?
If you don’t need life insurance anymore once your term ends, you can save the money you’d spend on premiums and use it elsewhere. Some reasons you may need to keep life insurance include:
- You still have loved ones you support financially
- You have insufficient savings to cover end-of-life costs
- You’re still paying off large debts
Find Life Insurance Coverage
If you are looking for a life insurance plan to replace your expiring term life policy, work with an agent to find a good option. Senior Benefits and Health Services is ready to help you find a plan. Just call us at 844-657-0231 to get started with a free quote.