Does term life insurance pay out at the end?
Term life insurance is life insurance protection for a specific
number of years. For example, if you buy 10 year level term life
insurance and you die within 3 years of buying the policy, your
beneficiary would receive the life insurance proceeds, usually free
of federal income tax. However, if you stopped paying on your life
insurance policy (policy lapse) and your coverage was not "In
Force" when you died, there would be no pay-out. Also, if you
cancel your term life insurance policy, there would be no pay out.
The reasons term life insurance do not pay out at the end include
the following: 1. The insured cancelled the policy. 2. The insured
stopped paying the insurance premiums. 3. The insured outlived the
term of the term life insurance policy, so the coverage expired. 4.
The insured did not renewe coverage when the policy expired. 5. The
insured did not tell their beneficiaries that they owned life
insurance, and so no claim was ever made to get the proceeds from
the life insurance policy. I hope that helps! Best of luck to you.
6. A term policy only pays off if the insured dies within the