3 min
22-May-2025
Term life insurance provides financial security to your loved ones in case of your untimely demise during the policy term. But what happens if you survive the policy period? Unlike other types of life insurance, term insurance generally does not offer maturity benefits. This article explores what to expect and how to plan effectively in such scenarios.
However, some term plans, known as return of premium (ROP) policies, refund the premiums paid if no claim is made during the policy term. While these plans cost more, they provide a financial cushion at the end of the term, offering a balance between risk cover and monetary benefit.
If you outlive your term policy, reassess your financial goals, liabilities, and dependents’ needs. Based on this evaluation, you can explore other options like investing in savings-oriented plans, purchasing a new term insurance policy, or focusing on health insurance and retirement funds.
Do you get the sum assured or money if the term life insurance ends?
In most cases, term life insurance policies do not provide any payout if the insured survives the policy term. These plans are pure risk covers, meaning the premiums paid are utilised solely for the protection during the tenure. This structure makes term plans highly affordable but without maturity returns.However, some term plans, known as return of premium (ROP) policies, refund the premiums paid if no claim is made during the policy term. While these plans cost more, they provide a financial cushion at the end of the term, offering a balance between risk cover and monetary benefit.
What happens if I survive the period of term life insurance?
Surviving a term life insurance policy simply means that the policy period ends without a claim. While this indicates good health and longevity, it also means you no longer have active life cover under that policy. Without renewal or additional planning, you may face a financial gap in your insurance portfolio.If you outlive your term policy, reassess your financial goals, liabilities, and dependents’ needs. Based on this evaluation, you can explore other options like investing in savings-oriented plans, purchasing a new term insurance policy, or focusing on health insurance and retirement funds.