What happens to a term life insurance policy if the insured outlives the term?

When a term life insurance policy is issued, it is designed to provide coverage for a specific period, known as the term. If the insured person outlives this term, the policy typically expires without any payout. This means that there will be no death benefit paid to beneficiaries since the purpose of the policy is to offer financial protection if death occurs during the term specified.

This outcome underlines the nature of term life insurance as a temporary measure rather than a permanent financial product. The insured often has the option to renew the policy or convert it to a permanent life insurance policy, but simply outliving the term means that the coverage has concluded without any benefit being triggered.

Understanding this fundamental aspect of how term life insurance works is crucial for financial planning, ensuring clients know what to expect from their policy and how to plan for their financial needs after the term ends.