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What Happens if I Outlive My Term Life Insurance Policy?

August 10, 2022
Our goal is to educate and advise on life insurance options, so you can feel confident in making the right choice, whether that’s through Quotacy or somewhere else. To ensure we provide accurate and trustworthy information, our writers follow strict editorial standards.
Term life insurance is temporary life insurance coverage, unlike permanent life insurance which lasts your entire life. You choose the length of the term which can vary from 10-40 years.

Your premiums are fixed during that entire period. For example, if you buy a policy with a 30-year term, you are insured for 30 years and your premium will never increase during those 30 years.

What happens to term life insurance if you don’t die?

If you die during the term, your beneficiaries receive a death benefit check from the insurance company after submitting a claim. However, if you don’t die (which is what you and your family are hoping for) then your coverage simply ends at the end of the term.

What age does life insurance expire?

The expiration of your life insurance policy depends on whether it’s term or permanent.

A permanent life insurance policy is typically set up to “mature” at age 121. So, essentially, it’ll be inforce your entire life.

Term life insurance expires at the end of term. Your age does not determine the expiration date.

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Do you get your money back at the end of the term?

No. If you outlive your term life insurance policy, the money you have put in will stay with the insurance company.

Term life insurance is not a savings or investment plan. It’s protection for your loved ones against your untimely death. Ideally, you’ll no longer need life insurance once your term expires.

Where does my money go?

Everyone who is paying life insurance premiums is essentially putting their money in a large metaphorical bucket managed by the life insurance company. The company then invests all the money they receive to fill the bucket to ensure they can pay out all necessary claims.

When an insured person dies, the company reaches into the bucket to pay out the death benefit. Your money helps another family in need of financial support because of a lost loved one.

If you die during the term of your policy, the company reaches into that bucket that everyone is paying into and gives that money to your beneficiaries.

For those who don’t understand why they don’t get a refund if the coverage isn’t used, we ask that you consider your car insurance. You pay your car insurance premiums to protect against the what-ifs.

You don’t actually hope you get into a car accident, right? And if you don’t use your car insurance, and then sell your car, you don’t get refunded the insurance premiums, do you?

Term life insurance is a similar concept. You buy life insurance coverage during your earning years, the years your family relies on you the most, and just hope your family doesn’t have to use it. But if the worst should happen, the term life insurance coverage is there to help your family financially.

What if I have a (ROP) return of premium term policy?

If you have a return of premium term life insurance policy, you get back the premiums you paid if you outlive your term.

Owners of ROP policies pay higher premiums for the benefit of knowing they get back their money if they don’t die during the term. Consider the comparison quotes table below.

Estimated Monthly Cost of a 20-Year $500,000 Policy for a Healthy Male
AgeTerm PolicyROP Term Policy
30$19.10$94.60
35$20.40$101.64
40$28.48$141.24
45$46.04$220.44
50$70.33$362.56
55$113.31$653.40
60$200.75$1,023.88

What if I outlive my policy but still want coverage?

If your term life insurance policy is ending and you want to continue to make sure your family is protected, you have some options,

  1. You can convert the policy into a permanent one.
  2. You can renew your term coverage.
  3. You can buy a new policy.

Converting Your Policy

Many term life insurance policies have a conversion rider automatically included. The rider would ensure you can convert your term policy regardless of your age or health status as long as you convert before the deadline.

The benefits of converting a term policy:

  • You don’t have to go through underwriting or take a medical exam.
  • You maintain the original health rating from the term policy.
  • You can decide when and how much of the coverage to convert.
  • You can opt to have life insurance coverage for your entire lifetime.

If you decide to convert, your premiums will increase drastically. You’ll no longer have a term policy, but a permanent policy.

A conversion option is typically only taken advantage of if your health has declined and you’re no longer insurable otherwise.

If you’re interested in converting, be sure to check the conversion expiry date listed on your policy.

Renewing Your Policy

Another option is to renew your term policy. Many insurance companies have renewability options on their term products. This means you can extend the coverage term year after year without having to re-qualify.

For example, let’s say you purchased a $500,000 20-year term life insurance policy when you were 30 years old. Your annual cost is $244.

You’re now 50 years old and your policy is set to expire this year. You can choose to renew the policy to extend the coverage another year. This means you’ll keep your $500,000 in coverage but you’ll no longer qualify for the $244 annual premiums. The renewal premiums jump to $2,989 annually for the 21st year. Each year you renew, these annual premiums will increase.

The benefits of renewing a term policy:

  • Allows you to reclaim your coverage at the end of your initial term.
  • Allows you to keep the original face value amount (or death benefit) of your policy.
  • Permits you to renew your term life policy without having to start the application process again.
  • Exempts you from answering medical questions or undergoing a medical exam to prove insurability.

Similar to converting, people don’t typically opt to renew their policy unless they are only given a short amount of time left to live due to terminal illness.

Buying a New Policy: A More Affordable Option

You don’t need to be terminally ill to realize you want more life insurance coverage. Perhaps life didn’t go as planned and you’re still paying off large debts or your children aren’t quite financially independent yet. Or maybe you and your spouse bought a vacation home and you want to cover that new mortgage. No matter the reason, sometimes buying a brand new policy is the best way to continue being insured.

Converting and renewing policies can be quite expensive. Before going either of these routes, try applying for a new term life insurance policy. It’s likely going to be the less expensive route, even if a health issue or two have popped up over the years.

You don’t need to get the same policy as you had before or even work with the same insurance company. A different insurance company may offer better rates than your current one. Get a range of quotes in different term lengths and coverage amounts until you find a price you’re comfortable with.

No one ever anticipates needing to use life insurance, but if the unexpected happens make sure your loved ones are protected. Be prepared and get a free and anonymous term life insurance quote today.

Note: Life insurance quotes used in this article accurate as of August 9, 2022. These are only estimates and your life insurance costs may be higher or lower.

Watch the What If I Outlive My Term Policy Video

63 Comments

  1. Phillip May

    Hi Natasha, my name is Phil and I hope you can help me by answering my question. I purchased a Gerber 20 year term life insurance policy in 1987, The police is a 20,000 dollar policy. I’ve obviously out lived the term, but I’ve been paying annually since I purchased the policy. I don’t ever remember converting the policy, I’ve just always paid the bill when it has come due. My question is did they convert the policy automatically and if not, do you think I would be entitled to a return of all premiums paid from the end of the term until current day? Anticipated thank you for your time.

    Phil

    Reply
    • Natasha Cornelius

      Hi Phil, you could be paying renewal premiums. Many term life insurance policies can be renewed year after year. Or it could be a $20,000 permanent policy. I recommend calling Gerber and asking for a policy review. Their life insurance customer service line is 1-800-704-2180. They can answer questions regarding your policy.

      Reply
      • Phillip May

        Thanks for your help Natasha. It is very much appreciated.

        Regards,

        Phil

        Reply
  2. Terry

    If I outlive my term life and I die after will my beneficiary still get the money????

    Reply
    • Natasha Cornelius

      Hi Terry, a term life insurance policy provides coverage for a specific number of years, the policy’s “term”. Once the term ends, the coverage ends unless you renew it or convert the policy.

      Reply
  3. María Reyes

    I had a life insurance of $250,000 for 30 years when I retired they did not informed me about my policy until after 30 days they said I lost all the money I paid to leave my sons is there anything I can do

    Reply
    • Natasha Cornelius

      Maria, a $250,000 30-year policy sounds like it was term life insurance policy, but you mentioned “they” informed you when you retired that you had it. Is “they” your employer? or the insurance company? If it’s a term policy, expiring after 30 years is normal if it has a 30-year term.

      To continue coverage, call the insurance company and ask what the expiry date is for renewing or converting the policy. Do this soon, this period of time may have already passed. But be aware that premiums will skyrocket if you choose to renew or convert it. If you still need life insurance coverage, you may be better off applying for a new term policy. You can find out what your premiums would be before committing to purchase.

      Reply
  4. Ghamatie

    If you outlived your term insurance..
    You lost all your money you have paid for ten years

    Reply
  5. Josie

    My husband has a 10 year term life insurance policy that will end in May of 2020 unless he decides to pay very high premiums. He wants to sell his policy to a company that would buy it and pay him to purchase the policy. We won’t be able to afford the high premiums so he will just have to end the policy. Is it a good idea for him to sell his policy? Does he have other options?

    Reply
    • Natasha Cornelius

      Josie, life insurance settlement companies only buy permanent life insurance policies or term life insurance policies that are convertible, pending on a few factors. If your husband’s term policy is convertible to a permanent policy and a doctor has given him a life expectancy of 10 years or less, then a life insurance settlement company may be interested. If these factors apply to your husband and his policy, reach out to your life insurance agent for assistance because this process can be complicated.

      If those factors don’t apply and you foresee your husband needing more life insurance coverage after the 10-year term is up then you may want to consider simply buying a new term policy if he’s still insurable. Depending on his age and health, these premiums would likely be much lower than renewing or converting his current term policy.

      Reply
    • Paul

      I am 57 and would like to open a life insurance policy that leaves my daughter 200.000 can you suggest one and length of policy also should I pass before paying the whole policy how much would she receive

      Reply
      • Natasha Cornelius

        Hi Paul, being only 57 years old you have a few options.

        You can buy a term life insurance policy with a term length as high as 25 years if you’d like. If you passed away prior to it expiring, your daughter would receive whatever the face amount is. You can buy a term policy with a $200,000 face amount.

        Or you could buy a guaranteed universal life (GUL) insurance policy also with a face amount of $200,000. This is a permanent policy so it would be active until you died and would leave a death benefit of $200,000.

        The GUL policy will be more expensive than the term policy. But neither policy requires you to pay the “whole policy”. The required payments end when you pass away or when the policy expires, as is the case with the term policy. Even if you purchased one of the policies and died a year later having only paid one year’s worth of premiums, your daughter would still receive the full death benefit amount.

        You can run both types of quotes right here on our website to give yourself an idea of how much the premiums would cost. Head here: https://www.quotacy.com/life-insurance-quotes/ enter your basic info and then you can choose a term length or “Forever” to view the GUL policy quotes. Contact us if you have any more questions.

        Reply
    • Emily Strader

      My insurance company returned my last premium saying I have paid the limit that can be paid on my $50,000 term life insurance policy. I have 5 more years on my term.
      I have paid $50,016.30. They tell me IRS code limits amount I can pay because if pre.iums go over that amount then policy becomes taxable on payout to beneficiaries. If no premiums are paid do I still have a policy of $50,000?

      Reply
      • Natasha Cornelius

        Hi Emily,

        There are a lot of factors that may or may not be in play here, so I will offer the best information I can based on assumptions I am making from your comment.

        I am assuming you have been paying renewal premiums on your term policy for a few years, hence cumulatively paying in as much premium as your total death benefit. And you mention you have 5 years left, so I assume your term policy is renewable to a certain age, one that you will reach in 5 years?

        If you do not keep paying premiums your term life insurance policy will lapse and your beneficiaries will not receive the $50,000 death benefit.

        If you want to provide more information, such as your age, how much your premiums cost, and the insurance company you purchased through, we would be happy to try and help further.

        Otherwise, reach out to your life insurance agent or call the customer service line to ask how you can keep the policy inforce to make sure your beneficiaries get a payout.

        Reply
        • Emily Strader

          Thank you. I will call my insurance company..its been sold many and is now called American Republic Ins Co. Des Moines, Iowa. I am 90 and had this policy since age 60 when I retired. Know I cannot but life ins. at my age.

          Reply
  6. Rogen

    I was reading a lot about Indexed UL policies. Are they worth it?. Combined with term insurance (250K + 500K) coverage. Is this best option for investment growth and death benefits?

    Reply
    • Jeremy Hallett

      Rogen,

      Excellent question! IUL (indexed universal life) is an interesting life insurance product. To directly answer your question about whether this is the “best” option for death benefit and investment growth, the answer is that it depends on your financial plan and the product and design that you choose.

      Many life insurance companies now offer an indexed universal life insurance option, and it is the fastest growing product in the life insurance market place. Insurance companies really like this product and it can be shown on paper to drive a lot of tax advantaged income in our retirement years. That being said, the design is very important.

      When funding an IUL product it is key to make sure to over-fund the contract. If at all possible, it should be funded up to the MEC limit. Otherwise it is not much of an investment opportunity. Many times they are created with a 5 or 7 pay. This allows the best design to grow the cash value in the contract. It should be designed with life insurance as a wrapper, but the real purpose of the policy is to drive cash value, not death benefit.

      The other thing to keep in mind is that there is no way the illustration that you are looking at will perform as shown. It is created with a fixed return over all years. That is not the way the contracts work. And there is something called a cap on the policy. This is typically between 8-11%. The insurance company reserves the right to drop this cap at any time. Meaning that it is definitely not guaranteed to stay the same for all years.

      Your expectations for the policy should be tempered and it is helps to know that the product will not perform as it does on paper. Maybe it will perform better in real life, but it is quite possible that it will perform worse (or even much worse).

      And last but not least, there are some companies that have moved beyond an easily understandable indexed universal life policy to a quite complex product with lots of moving parts. The ‘new’ extras involve leveraging and multipliers (these have come into play over the last couple of years after the NAIC create a rule called AG49). They sound great on paper and show huge numbers for retirement income, but there are big risks with taking that approach.

      A vanilla IUL (one without those bells and whistles) has cash value downsize protection and an opportunity to grow at a faster rate than a vanilla whole life insurance policy. The new bells and whistles on some of the IUL products put much more risk on you as the client and negate the downside protection. It makes them work more like a security product than a place for your safe money.

      So, in response to your question one more time: it depends. It is important to work with a skilled advisor who can share with you the risks and rewards and who brings deep life insurance knowledge into the equation to help you make your decision. The internet is full of advice and information, but some info isn’t easily found and needs the interpretation of a life insurance expert.

      Reply
  7. Val H.

    My question is if my father did the term life and lived to age 86…are you saying that his insurance has ended and he can get a payout or renew and pay a higher premium?

    Reply
    • Natasha Cornelius

      Val,

      Term life insurance is only active during the years of the term. If your father purchased a 10-year policy, it will be active for ten years. If your father’s term life insurance policy has ended, there will not be a payout. Before the policy ends, he can choose to renew the policy and pay the higher premiums. He could also choose to convert the term policy into a permanent policy if his policy includes a conversion option.

      Reply
      • Leslie w Higbee

        Would it be better for a 70 year old man to take a 20 or 30 year term so the term insurance will not run out by the time you’re 90 years old or 100 for 30-year term

        Reply
        • Natasha Cornelius

          Leslie, a 20-year term policy is going to be your best bet between those two options. Insurance companies have maximum age limits for life insurance policies. A 70-year-old individual will likely not be able to qualify for a 30-year term policy. And only a handful of companies offer a 20-year term policy to someone 70 years old.

          Reply
          • felisha

            hey I just wont to ask a question.My mon had a term life insurance which was for 2 year but she onli live 1year and a half of the policy but she was buried but the insurance company said they have not paid anything until they get her medical and doctor report so how will I know they will payoff the policy or not or what they are looking at to tell if they can payoff

          • Natasha Cornelius

            Felisha, I’m sorry to hear about the death of your mom. In regards to your question, most life insurance policies have a two-year contestability period. This means if the insured person dies within the first two years of owning the life insurance policy, the insurance company can investigate whether everything on the application was accurate. For example, if the cause of your mother’s death was lung cancer due to smoking but she claimed on her application that she did not smoke, the insurance company can then deny having to pay out the benefit. If there is nothing amiss, the insurance company will pay the benefit. Assuming you are the policy beneficiary, they will let you know.

    • Mary Collins

      I am a63 year old female I got my insurance when my husband was living,now he is deceased today I received a letter,saying my term life insurance will go up the first of the year. From 46dollars a quarter to 212.46 every guarded. I wasn’t told the time. So that’s money I lost,because I can’t afford it now

      Reply
      • Natasha Cornelius

        Mary, I’m sorry to hear your husband has died. In regards to your life insurance policy, this is typical for term life insurance. A term life insurance policy has fixed premiums for a specific amount of years (10, 15, 20, 30, etc. whichever term length you chose) and then it expires or renews. Renewing it increases the premiums exponentially. Ideally, term life insurance expires when your beneficiaries no longer need the financial protection. You can let your term life insurance policy terminate since you cannot afford the renewal premiums. Most people do not renew or convert their term life insurance policies.

        Reply
  8. Nancy Nicol

    Hi i want to have a full life coverage but i have one question.What if i would relocate one day but will stay pay the premiums,how does this work if something happened to me abroad?

    Reply
    • Natasha Cornelius

      Hi Nancy,

      Hypothetically speaking, if you purchased a life insurance policy today and then suddenly decided to move to Japan a couple years in the future and you died there, the life insurance company will still pay out the death benefit. However, if you are planning on buying a life insurance policy today and already know that you will be moving to Japan in a couple years, the life insurance company will want to know. There is a question on life insurance applications that ask something along the lines of “Do you have plans to travel or move outside of the U.S.?” Answer honestly so the insurance company has no reason to investigate your beneficiary’s death claim later on. Let us know if you have any more questions.

      Reply
  9. Gali

    What happens if during the the term life insurance you get sick, let’s say on the 20th year of a 30 year term, are you still able to renew the policy after it expires? Or will you be considered having a pre-existing condition for the renewal and may become uninsurable or have very high premiums?

    Reply
    • Natasha Cornelius

      Hi Gali,

      If you have a renewable term policy you can renew it even if you’re sick. Renewable term allows you to continue coverage without having to go through underwriting again. The premiums will be much higher after renewing, so this is only a financially viable option if you believe you would be uninsurable otherwise.

      Reply
      • Gan Chen Jie

        During the term life insurance you get sick, is term life insurance still valid? Why?

        Reply
        • Natasha Cornelius

          With a term life insurance policy, the insurance company pays out the death benefit if the insured individual dies during the term period. Being sick while insured doesn’t matter. When the term is expiring, if you choose to convert or renew the policy, being sick doesn’t matter in this case either. Insurability is guaranteed.

          Reply
  10. Shara

    If i have a ins policy and only paid the premium for 3 yrs, does the policy cover the full amount

    Reply
    • Natasha Cornelius

      Hi Shara,

      Yes. For example, if you bought a 20-year term life insurance policy and died in year three, your beneficiaries would still receive the full death benefit amount even though you only paid premiums for three years.

      Reply
  11. Jessica

    My sister have a 12 months term life insurance policy but she died within 4 months of her policy being renewed. Will insurance company pays her funeral expense?

    Reply
    • Natasha Cornelius

      Jessica,

      I’m sorry to hear about your sister’s death.

      Are you saying your sister died in month 8 of her 12 month term? If so, then the insurance company will pay out the death benefit.

      If you’re saying that her 12 month term ended and then she passed away 4 months after she planned on renewing, but didn’t, then the death benefit won’t pay out. The grace period of most term policies is 31 days.

      Reply
  12. Wayne Cox

    can I insure a sibling that doesn’t have insurance?

    Reply
    • Natasha Cornelius

      Hi Wayne,

      If your sibling passed away, would you suffer financial loss? For example, do you both live together and pay rent? If so, you have insurable interest and you could purchase life insurance on your sibling if you have their permission.

      Reply
    • Chris

      I live with my parents can I purchase term or any insurance on them.

      Reply
      • Natasha Cornelius

        Chris, with your parents’ permission you may purchase life insurance on them. They will likely need to take insurance medical exams and have phone interviews with the insurance company to verify identity and the information on their applications.

        Reply
  13. Legretcia

    My grandma have whole life insurance for only 1000 but she’s been paying for it every month for over 30 years, should the co.still take payment from her,she’s met the 1000 more than 3 times. Is this illegal

    Reply
    • Natasha Cornelius

      Hello Legretcia,

      It sounds like your grandma has a guaranteed whole life policy. I advise you to call the insurance company, with your grandma, and ask them to explain the contract. As long as your grandma is present with you, the insurance company will most likely be willing to discuss it with you.

      Reply
  14. Michael

    Hey! I was just wondering if I had a term policy and near the end my term, and decided to do a whole life policy. Would the premiums I payed in too the term policy stop? How does that work?

    Reply
    • Natasha Cornelius

      Hi Michael,

      Yes. If you were to convert your term policy into a whole life policy, you would stop paying the term policy premiums and instead would begin paying the whole life policy premiums. Keep in mind your premiums will increase since a whole life policy is more expensive than term and your age is taken into consideration when converting (but not your health).

      Another thing to keep in mind is the expiration period of your conversion option. Some policies do allow conversions up until the end of your term, but some instead require you to convert early on, for example, within the first ten years of the policy.

      Some insurance companies allow partial conversions as well. For example, if you have a $500,000 term policy and only want to convert $50,000 of it into a whole life policy, you can choose to do so and would then have two separate policies. The term policy would drop to $450,000 and your premiums would drop to whatever the cost would be for that one, but then you’d also have a small whole life policy you’re paying into.

      I hope that helps clarify things for you. Thanks for reaching out!

      Reply
  15. Sophia

    If you outlive your term life policy of 30 years, is this money you are able to then use or does it still just eventually go to your beneficiaries when you eventually die or is it the insurance company money because essentially you did not die during the 30 year period and you have finished paying for your policy

    Reply
    • Natasha Cornelius

      Hi Sophia,

      You can think of term life insurance like your car insurance. You pay for it, but you hope to not need to use it. Term life insurance is protection against the what ifs in life. If you outlive your policy, you do not receive the money back unless you purchase return of premium term life insurance.

      Reply
  16. Patricia Foddrell

    My mom is still paying her insurance monthly even though it has paid for her funeral expenses last year. What if she stops paying now?

    Reply
    • Natasha Cornelius

      Hi Patricia,

      I’m not sure I understand what you mean that the policy has already paid for her funeral. Will you please share some more background about what you are asking and I am happy to answer to the best of my ability.

      Reply
  17. bela

    Hi, my ex-husband died in August of this year, leaving behind two children. we had a term life insurance for 15 years. He passed a couple of months before the policy was over. The insurance company had mentioned that we would receive $11,300 for the premium we paid. Since he passed do i still get that money including the death benefits?

    Reply
    • Natasha Cornelius

      Hi Bela,

      The premiums being returned to you may be the unused premiums. Was the policy paid on an annual basis? For example, if your ex-husband paid $13,560 annually for his policy and died in the 2nd month, the unused remaining premium (ten months’ worth which would be about $11,300) would be returned to you. And you would receive this in addition to the benefit amount.

      However, that is just a guess. We don’t know all the facts about the policy your husband purchased, so we cannot say for certain. We recommend that you contact the agent or insurance company who wrote the policy and ask them your questions. That will be the only way you know for sure.

      Reply
  18. Lyn

    If I have a term life 10 year policy for $300,000.00, and have only been paying on the policy for 2 years and die, is the full amount paid to my survivor?

    Reply
    • Natasha Cornelius

      Hi Lyn,

      Yes – the full amount would be paid to your beneficiaries.

      However, if you die within the contestability period, which is typically two years, the life insurance company can investigate whether you gave accurate information on your life insurance application. If they discover you misrepresented yourself, they can deny paying all or a portion of the death benefit. Same goes for suicide. If an insured person commits suicide within that two-year timeframe, the life insurance company has the right to not pay out the death benefit.

      Reply
  19. angela

    hi, is there a life insurance policy that if i pay my insurance and i dont die, that i get the money back that ive paid in

    Reply
    • Natasha Cornelius

      Hi Angela,

      Yes – it’s called Return of Premium term life insurance. If you outlive the term policy, the insurance company will return the premiums that were paid in. However, this type of life insurance does come with higher premium payments than “regular” term life insurance.

      Reply
      • David Bartley

        Hi can I have a quote for return of premiums policy please

        Reply
        • Natasha Cornelius

          Hi David,

          In order to obtain a quote for Return of Premium, please contact us directly as we would need to know a few factors such as your age, height and weight, and zipcode.

          Reply
          • Pearl

            I purchased a term life insurance policy that ended when my husband reached the age of 80. It show cash values up until the 20th year of the policy. My husband’s 80th birthday was in September. No where on the policy did it state that the cash value would decrease after the 20th year.. Now the insurance company has decreased the amount they will pay for cashing in the policy to $900. The cash value at the 20th year was over $2000.

          • Natasha Cornelius

            Hi Pearl,

            Term life insurance policies today don’t accumulate cash value so I will assume you purchased this quite some time ago. Right now, it sounds like the policy is being kept active by using the cash value to continue to pay the premiums. This would explain why the cash value is decreasing. It will continue to decrease each month you do not cash in the policy. I advise you to contact the insurance company to make sure this is, in fact, what is happening and request to surrender the policy before the cash value is completely drained.

  20. Hayley Jones

    Is there an ongoing life insurance policy out there. One that you can continue to make monthly payments to without having to specify a term eg: 5, 10 years, etc and the surviving partner will get a payout when the other dies?

    Reply
    • Natasha Cornelius

      Hi Hayley,

      The life insurance product you are referring to is a permanent policy. This is exactly what it sounds like – as long as you pay the premiums keeping the policy inforce, it will last your entire lifetime and the insurance company will pay out a death benefit to your beneficiaries when you die.

      There are a few different types of permanent products, the most common one being a whole life policy. Permanent policies are more complex and more expensive than term policies. We have a life insurance consultant here on staff whom you can speak to if you would like more information on permanent policies. Give us a call at (844) 786-8229 if you are interested in learning more.

      Reply
  21. Lu smith

    My parents took out child life insurance in my name when I was a baby. They have been paying the premium but it has now expired and I have received a cheque in my name. My parents are saying the money is theirs because they paid the money although I think it is mine because the policy is in my name and the letter / cheque that has been sent is in my name. Can anyone shed some light on this please? Thank you

    Reply
    • Jeremy Hallett

      Lu,

      If you want to assign the check to your parents, then you can do that. Since the check is in your name, you have the ability to cash it and keep it for yourself as well. I don’t know the relationship you have with your parents, nor what impact you ‘keeping’ the money will have on your ongoing relationship with your parents. This is your call and the decision is in your hands. My advice is to find a path that results in as little suffering for both you and them as possible.

      Reply
  22. Jean George

    Very simple and precise answer. Thank you

    Reply
    • Barbara Ford

      I am reading this because my Mom has outlived her policy and your first name is hers and last name is her maiden name

      Reply

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