Can You Outlive Your Life Insurance?

When purchasing life insurance, you may be wondering whether it’s possible to outlive the policy you choose to take out. Life insurance is one way for your beneficiaries to cover some of the bills after your passing. Therefore, it’s important to know when your policy ends, to gather a full understanding of if those funds will be there for your loved ones.

To clarify, there are two types of life insurance policies:

Whole Life Insurance

Whole life Insurance lasts for the life of the policyholder, meaning that in a majority of cases, you will not outlive your life insurance. You should not have to worry about when you pass because you will always be covered. Your loved ones will receive funding based on the policy you chose to help them have as smooth of a recovery during their time of grief.

Term Life Insurance

Term life insurance works a little differently. You can take term life policies out for periods of time, usually for five-, 10-, 15-, or 30-year periods. Therefore, it is very possible to outlive your term life insurance policy. Policyholders should be mindful of when their plan comes to an end to ensure that they are able to decide if they want to renew. It is possible, however, for people to change from term life insurance to whole life insurance after their period is finished. Stay updated and in touch with your licensed life insurance agent to be sure that you fully understand when you will no longer be covered, and the options you have to continue your life insurance policy.

Life insurance can be a time-sensitive product depending on the policy. It’s imperative to understand that policies are only fulfilled if the policy owner passes during the active time of the policy. With that knowledge, talk with a licensed life insurance agent to discuss the best life insurance policy for your needs, whether it be a whole life policy or a term life policy.