Insurance
Life Insurance

Does term life insurance pay out at the end?

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Wiki User
2007-12-17 05:12:30

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

term.


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