What happens to my life insurance policy if it expires before I die?
Unless you have whole-of-life cover, your life insurance policy has an end date, and depending on when that is, you may find you outlive your policy.
At that time, like any other form of insurance, your cover will cease. Should you then continue to want cover, be aware your options may be drastically limited.
Some insurers may allow you to apply for an extension to your policy. However, in this instance your premium will be based on your current circumstances – not those of when you applied, so you could find what you’re required to pay becomes prohibitively expensive.
Alternatively, you could take out a new insurance policy with another company, though again you’ll need to be assessed first and, on the off chance you are approved, premiums will be dear.
While your policy may have expired, you should carefully consider your circumstances – do you really need to continue having cover? Most policies are taken out in people’s youth in order cover mortgages or child tuition fees and to ensure loved ones are provided for should the worst happen; it’s therefore possible that you don’t have the same financial demands and dependencies as you once did. In that case, it may be neither economical nor necessary to take out a new policy.
Essentially, it’s important to recognise that even if you’ve been paying into an insurance policy for forty years, that all expires come the policy end date.