Can a Life Insurance Policy Expire?

Life insurance is important for helping secure your loved ones’ future and may be an essential component of a comprehensive financial plan. A life insurance policy can help provide long-term financial protection to your loved ones and help cover expenses such as outstanding debts, funeral costs, and lost income in case of an unforeseen event.

It’s essential to understand how life insurance works and the types of available life insurance plans. However, many people need clarification about the details of life insurance policies, including whether or not they can expire. In this article, we’ll find out how long policies last and how you can choose the right type of policy for your needs.

Which Types of Life Insurance Expire?

Whether or not a policy expires depends on which type you choose and if you’ve paid the premiums on time. Life insurance policies can be categorized mainly into two types: ones that expire and ones that offer lifelong coverage.

Term Life Insurance Policies

Some life insurance policies provide coverage for a specific duration, usually 10, 20, or 30 years. These policies are known as term life insurance policies, and they expire when their term ends. If the policy is currently active and the policyholder dies, their beneficiaries will receive a payment known as the death benefit. If the policyholder lives beyond the agreed-upon term, the policy will lapse and no longer provide coverage. However, the policy may also lapse before the term ends if the policyholder fails to pay the premium to renew it.

Permanent Life Insurance Policies

Permanent life insurance policies provide coverage for the policyholder’s entire life and don’t expire as long as the policyholder pays their premiums without missing any payments. Permanent life insurance policies consist of whole life insurance and universal life insurance, among others. Certain permanent policies may accumulate cash value over time, which can be utilized by the policyholder during their lifetime.

Factors to Consider When Applying for  Life Insurance Policies

When purchasing a life insurance policy, it’s essential to consider various factors to ensure you make the right decision. Below are some key factors to consider:

Age: Consider your age as term policies usually have age limits for coverage, and premiums tend to be lower when you’re young and healthy. If you are still determining at what age you should get life insurance, keep in mind that the younger you are, the more likely you’ll have lower premiums.

Financial Goals: Determine your financial goals and how a life insurance policy can help you achieve them.

Health: Consider your health and any pre-existing medical conditions as they can impact the cost of your policy and the coverage you need.

Budget: Determine your budget for the life insurance policy as premiums vary based on factors such as age, health, and coverage needed.

Coverage Needed: Assess your coverage needs based on your financial obligations and dependents.

Moreover, the premium you pay will depend on the factors mentioned above, impacting the policy’s overall cost.

Ultimately, selecting the right life insurance policy can be challenging. Yet, it’s essential to help ensure that your loved ones are cared for should something unexpected happen to you. It’s also important to shop around and compare quotes from different insurance companies to ensure you get the best coverage for your budget.

Final Thoughts

If you’re considering purchasing life insurance, it’s crucial to understand the various types of policies available and how they work. Knowing whether a policy can expire is essential when selecting the appropriate coverage for you and your family. While some policies have expiration dates, others offer lifelong coverage if you pay their premiums on time. By researching and collaborating with a trusted insurance professional, you can identify the right life insurance policy to help give you and your loved ones peace of mind and better financial protection.

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact a local Aflac agent.     

Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.

68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Virginia, Policies ICC0965JTO & ICC0965JWO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Q60000 series: Term: In Delaware, Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.

Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).

This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.

Aflac does not offer Universal or Variable Universal life insurance.

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NY | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211

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