A question frequently asked is, “Can a life insurance policy expire?” In some cases, yes. To explain, Criss Crombie, the Life and Financial expert, stresses the importance and need to review your life insurance policy on a regular basis. Check out his video below to learn more!
Know about the Different Types of Life Insurance
Basically, there are two different types of life insurance. The first is term insurance, which covers a specific period of time, hence the name term insurance. Secondly, there’s permanent insurance, which could last as long as you live. In most cases, the permanent policy stays in effect until age one hundred. However, if you have a term policy, which most people do, the term policies could last anywhere from a year to twenty-five or thirty years.
Review Your Policy Regularly
So yes, the term policy can expire if it goes past the end of that term. Therefore, it’s important to take a look at your policy on a regular basis. Every year or every couple of years, you should make sure that your needs haven’t changed. At least stay on top of your policy and know the terms and conditions of the policy and when it’s going to expire. Additionally, check your options. For instance, do you have a policy that can be converted to a permanent plan? Is it renewable? These are only a few of the many questions that you should ask in regards to your life insurance policy. It’s really important to understand exactly what you have, which is why it’s important to frequently review your life insurance policy.
Find an Agent
If you haven’t seen your agent for a while, visit them and review your policy. Don’t have an agent? Find one. There are agents near you that will sit down with you and review your life insurance policy to make sure it’s what you think it is.
Example of Why It’s Important to Review Your Policy
One example of why it is so important to review your life insurance policy regularly is in a lot of cases clients with term coverage think that it’s good until age ninety-five. Though the policy is renewable until age eighty to ninety-five, it’s a ten-year level term premium. After the tenth year, the premium skyrockets, and people don’t understand why. When the premium significantly increase in the eleventh year, they may not be able to afford it. Bottom line, it’s good to know exactly what you have so do a review on a regular basis.
Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions. So if you have any questions or concerns, comment below and your question may be the topic of our next video!
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