What Happens If You Survive the Term Insurance Period

A comprehensive look at what happens when your term insurance policy matures and the choices available.
Check Life Insurance Policies
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.

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.

What should you do if you survive the term life insurance period to ensure you get benefit?

Surviving a term policy requires proactive financial planning to ensure continuous benefits. Here’s what you can do:

1. Assess your coverage needs:

Evaluate your financial situation, dependents, and liabilities to determine if you still need life insurance or if your focus should shift to retirement and savings plans.

2. Consider buying a new policy:

If you need continued coverage, explore new term insurance or whole life policies. However, premiums may be higher due to age and health considerations.

3. Invest in retirement plans:

Redirect the funds saved from term insurance premiums into retirement-focused plans like annuities or pension schemes to secure regular income.

4. Opt for health insurance:

As healthcare costs rise, investing in robust health insurance becomes essential to cover medical expenses in your later years.

5. Build an emergency fund:

Set aside a financial cushion to handle unexpected expenses, ensuring your peace of mind in retirement.

Conclusion

Outliving a term life insurance policy is not uncommon and should be seen as an opportunity to re-evaluate your financial planning. While term policies do not typically offer maturity benefits, strategic steps like investing in retirement plans, health insurance, or new life cover can help ensure long-term security and a comfortable retirement.

Frequently asked questions

Do term insurance policies offer a return of premium option?
Yes, some term plans, known as Return of Premium (ROP) policies, refund all premiums paid if the policyholder survives the policy term. While these policies are more expensive than standard term insurance, they provide a combination of risk coverage and maturity benefits.

Can the duration of a term policy be extended?
Generally, term insurance policies do not allow extension of their duration. However, you can opt for a new policy or consider renewable term insurance at the time of purchase, which allows for renewal without a fresh medical examination.

Is it advisable to invest in a new insurance plan after outliving my term policy?
If you still have financial dependents or liabilities, it’s wise to invest in a new insurance plan. Options include purchasing another term plan or exploring whole life policies, retirement schemes, or health insurance, depending on your age and financial goals.

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Disclaimer

*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Co. Limited , Star Health & Allied Insurance Co. Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limitedunder the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third-party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.

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