Life insurance is an overwhelmingly important asset for individuals who have dependents or other liabilities. Though, life insurance does not always last forever. In fact, some life insurance policies are designed to expire on a certain date. 

If you are curious about how long your life insurance policy could last, read on. 

What is Life Insurance?

Life insurance is a form of insurance policy that provides financial support to your beneficiaries when the insured person dies. This payment is called a death benefit and it can range from $5,000 to several million dollars. As the policyholder, you can choose anyone to be your beneficiary, meaning that its possible to have the money go to any person or entity that you want. 

Types of Life Insurance

Life insurance comes in several forms. The primary categories are permanent life insurance and term life insurance. As the name implies, permanent life insurance lasts for the insured person’s entire lifespan. Term life, on the other hand, has a set expiration date. Which is best for you depends on your specific circumstances. 

Which Life Insurance Policy Should You Get?

The perfect life insurance policy for you depends on the amount of time you will need the added protection. For example, someone with great career prospects and short-term liabilities could benefit greatly from a term life insurance policy that only spans 10-20 years. Individuals who instead expect that they will have liabilities for the foreseeable future would be better off getting a permanent life insurance policy. 

With permanent life insurance, rates are locked in as soon as you sign up. Therefore, you don’t have to worry about paying more in the later years of your life. Although, individuals who choose to purchase term life insurance and find that they need to purchase another plan after the term expires will need to pay increased rates based on their age and health status. 

Altogether, it usually makes more sense to buy a permanent life insurance plan while you are still young. Doing so ensures that you get the maximum benefits at the lowest possible costs. 

Your Life Insurance Policy Doesn’t Have to Expire

Not all life insurance policies have an expiration date. If you are interested in finding one that will last a lifetime, Better Insurance Management can help you sort through your options. Even if you prefer a term life insurance policy, we have the expertise needed to help you find one of those too. 

To get started with a free quote on coverage in your area, don’t hesitate to reach out to us via phone or using the contact form on this page.