What does "term expiration" refer to in a life insurance policy?

What does "term expiration" refer to in a life insurance policy?

• A. The point at which policy renewal is mandatory
• B. The time when a life insurance policy ends and coverage ceases
• C. A period for adjusting the terms of the coverage
• D. The timeline for guaranteed benefits to be accessible

Answer: (B)

"Term expiration" in a life insurance policy specifically refers to the moment when the policy reaches its end date and the coverage it provides ceases. This means that after the term expiration, the insured individual is no longer covered by the policy, and no benefits will be payable upon the insured’s death or in the event of a claim. Term life insurance, in particular, is designed to provide coverage for a specified period, such as 10, 20, or 30 years. When this time frame concludes, the policy expires. At this point, policyholders typically have options, such as renewing the policy, converting it to a permanent insurance product, or allowing the coverage to lapse. Understanding term expiration is crucial for policyholders to make informed decisions about their insurance needs and financial planning.

"Term expiration" in a life insurance policy specifically refers to the moment when the policy reaches its end date and the coverage it provides ceases. This means that after the term expiration, the insured individual is no longer covered by the policy, and no benefits will be payable upon the insured’s death or in the event of a claim.

Term life insurance, in particular, is designed to provide coverage for a specified period, such as 10, 20, or 30 years. When this time frame concludes, the policy expires. At this point, policyholders typically have options, such as renewing the policy, converting it to a permanent insurance product, or allowing the coverage to lapse. Understanding term expiration is crucial for policyholders to make informed decisions about their insurance needs and financial planning.