What Age Does Life Insurance Expire?

When you’ve shopped for life insurance or at least thought about it, have you ever wondered, “Does life insurance expire?” or “Until what age will it stop covering me?

That’s a great question — and a great one to explore! The vast majority of people believe that when they buy life insurance, it will provide for their loved ones, regardless of what happens. But the fact is, no  life insurance policy lasts forever. Others simply expire after a certain period. The others may stop when the aging process terminates at a certain age. And even “permanent” policies have fine print that could change coverage in old age.

Whether you’re preparing for retirement, passing on your estate, or simply seeking reassurance, it’s essential to know how long your life insurance will remain in effect — and what options you have as you age.

In this guide, we will deconstruct the flavours of life insurance , then delve into what happens as you age and how to make smart decisions to prevent a “woah I didn’t know that big of a policy lapsed” scenario.

Types of Life Insurance

First, a little context: There are two main types of life insurance products before you jump into expiration ages:

Term Life Insurance

This type of coverage provides insurance for a set period (usually 10, 20, or 30 years), with renewals available up to age 95. It is the least expensive kind of insurance and best for someone who needs protection during their peak earning or family-raising years.

Permanent Life Insurance

This group encompasses whole life, universal life and variable life policies. These types of policies last for your whole life and include a cash value feature that accumulates over time.

What Happens at the End of the Term?

Privacy Policy: Term life insurance comes with an expiration date. If you purchase a 20-year policy when you are 35, for instance, your coverage ends when you are 55 — unless you take action to renew the coverage or convert the policy.

Most term policies offer the option to renew each year, without a medical exam, after the term expires. However, your premium will rise each year as you get older, which can become cost-prohibitive.

Age Limits For Your Term Policy

The majority of term life policies cap coverage at ages 85 or 90. Indeed, many insurers won’t sell you a new term policy once you reach the age of 70 or 75. Here’s a general idea:

• New term policy: Generally, while still in your 70s.
• Maximum Age of Expiration: Typically 80-95 years old
• Maximum renewal age: Some insurers offer the option to renew annually up to age 9,0, but the premiums, typically, prohibitively expensive.

Is There an Option to Outlive a Term Life Insurance Policy?

Yes—and many people do. You finish making payments. You lose your coverage. There is no payment if the insured dies during the policy term. If there’s anything left when you die, the policy pays out. However, if you live beyond its limits, the policy lapses, and the premiums you’ve paid are lost.

Permanent Life Insurance: The “Lasts Forever” Choice—Of A Sort

So let’s move on and talk about permanent life insurance policies. These are whole life, universal life, and variable life. These are intended to span a lifetime — but here’s the catch: even permanent policies can “mature” or have a technical expiration date.

Does Whole Life Insurance Expire?

Whole life insurance is designed to last your lifetime, with premiums that are usually fixed at a flat rate. But with traditional whole life policies, most are structured to mature at age 100 or 121.

At maturity:

• The face amount will be the same as the D. The cash value of the policy is exactly equal to its death benefit.
• The policyholder may receive the cash value from the insurer
• The coverage expires, even if you are not

As life expectancies rise in modern societies, so does the number of people who reach the age of 100. That’s why many of the newer policies are “to age 121,” meaning there’s less of a possibility the policy will outlast you.

Universal Life: Flexible But Complicated

Universal life insurance policies have more flexibility in premium payments and death benefits. But this takes continuous vigilance. If you make the mistake of underfunding your policy, or if interest rate assumptions don’t live up to expectations, your policy may lapse while you’re still paying into it.

Policies can lapse due to:

• Not enough cash value to support the increasing cost of insurance
• Non-payment or late payment of premiums
• Low cost of market-based cash value (for VUL)

The majority of universal life insurance policies are typically designed to expire between the ages of 95 and 121, depending on the insurance company and policy.

Final Expense and Guaranteed Issue Plans

What Are They?

These are simplified issues or guaranteed acceptance whole life insurance policies designed for individuals aged 50 to 85. They provide relatively small death benefits (commonly $5,000 to $25,000) intended to pay for a funeral, medical bills or small debts.

When Do They Expire?

As long as you continue to pay premiums, they don’t expire. They are whole-life policies, which stay in place until the individual’s death. Most guaranteed issue plans begin to issue coverage up to age 85 or sometimes 90, but the death benefit amount is small.

Riders and Conversion Options: Continuing or Changing Coverage

Many term policies come with conversion riders, which make it easy to convert your term policy into a permanent one without a medical exam before a certain age, such as 65 or 70. This is a nice approach to ensuring you have guaranteed life insurance when your health has deteriorated.

Other useful riders include:

• Return of Premiums (ROP): Returns your premiums if you outlive the term (more expensive premiums)
• Clause of renewability: The policy can be reviewed annually once the policy term is over (premiums will increase every year)
• Long-Term Care Rider: Allows you to tap into the death benefit to help pay for nursing home or home care.

What Happens When You Outlive Your Life Insurance?

For instance, say you bought a 30-year term policy when you were 40. You turn 70 and your term expires, and hey, you’re still alive! Now what?

You have a few options:

• Yearly renewal (costly)
• Convert to permanent coverage (if still permitted)
• Purchase a new policy (if you are in good health, and it is affordable)
• Forfeit and self-insure with savings or retirement income

It’s smart to review your insurance plan every couple of years, especially as you near retirement or the end of a term, and make sure it’s still serving your needs.

Planning for Old Age Coverage

Here are some steps you can take to work toward lifetime coverage:

• Purchase permanent life insurance at an early age when it’s most cost-effective
• Good policies are those with a maturity age of 121 or more.
• Guarantee your UL policy is properly funded
• Place a conversion rider on your term policy
• Final expense insurance for funeral expenses in later years

Conclusion

Which brings us to this question: At what age does life insurance expire?

It varies by type of policy:

• Term life will usually expire between ages 75–95, or at the end of the term you choose
• Whole life may also mature at age 100 or 121
• Universal life to age 95-121–but only if you fund it correctly
• There is no expiration date on Final Expense policies, as long as the premiums are paid.

The key is to be familiar with the structure of the insurance policy available to you, including the maturity date and coverage conditions. Revisit your life insurance coverage as your health and financial circumstances change. For 85-year-olds, too, there’s a life insurance policy that corresponds to the stage you’re in — even if it’s time to ensure the policy still serves your needs.