When your insurance policy expires while you are still alive, you will no longer get the benefit of life insurance coverage through the policy. However, you will have the option to convert to a permanent policy or buy fresh term insurance.
- If you had bought a term life insurance policy, it is valid for a set term, such as 10-30 years. You have to pay premiums throughout the insurance term and in case of your death during this period, your family receives the death benefit.
- If you live beyond your policy’s expiration date, you’ll no longer require life insurance by that time. However, if you feel that you require coverage after your policy expiration, you can opt for a term conversion or purchase a new policy with lower coverage.
- Many term life insurance policies come with a conversion rider that ensures you get a chance to convert your term policy irrespective of your age or health status. The conversion has to be done within the set deadlines.
Here are the two options that you must choose from once your life insurance expires while you are still alive:
- Choose Extension - This allows you to keep your policy active and you can continue to make premium payments. This can help if you want to keep your policy active for a period of two to three years. It is important to note that the cost of policy premiums will keep increasing as you age.
- Policy renewal – This can be a convenient option if you are willing to renew your insurance policy online. It hardly takes any time and can be done in a hassle-free manner.