What is a common outcome for term life insurance at its expiration?

At the expiration of a term life insurance policy, a common outcome is the termination of coverage. Term life insurance is designed to provide protection for a specified period, usually ranging from one to thirty years. When this term comes to an end, the policyholder no longer has a death benefit, and the coverage ceases unless action is taken to extend it, convert it, or purchase a new policy.

The nature of term life insurance is such that it does not accumulate any cash value or offer the same benefits as a permanent life insurance policy. Therefore, once the term has expired, it does not automatically continue or transform into another type of policy, which clarifies why termination is the standard outcome.

Understanding the characteristics of term life insurance is crucial for making informed decisions about life insurance coverage. This includes being aware that unlike permanent policies, term policies do not provide options for conversion or renewal without specific arrangements made ahead of time.