A term life insurance policy matures under which condition?

A term life insurance policy is designed to provide coverage for a specified period, known as the term. The policy matures when the insured passes away during that term. This means that if the insured dies while the policy is active, the beneficiaries receive a death benefit, fulfilling the primary purpose of the policy.

The nature of term life insurance is that it does not accumulate cash value like whole life or universal life policies; thus, the only time it pays out is upon the death of the insured during the active term of coverage. Therefore, the core function of a term life insurance policy is to offer financial protection to the insured's beneficiaries specifically during the specified time frame.

Other potential conditions listed do not define the maturation of a term life policy effectively. For example, maturing at the end of the policy term implies no payout if the insured is still alive, which contradicts its fundamental purpose. Similarly, reaching a certain age or policy cancellation do not result in a payout, as they do not reflect the policy's intended benefits.