What happens after 20-year term life insurance?
When a 20-year term life insurance policy expires, the policy simply expires, and no action needs to be taken by the policyholder. If you want to continue having coverage, you’ll have to apply for new life insurance.
Who benefits from term life insurance?
- People with dependents: If you have dependents, such as children or a spouse, term life insurance can help to ensure that they are financially secure if you die. The death benefit from a life insurance policy can be used to pay for things like funeral expenses, mortgage payments, and college tuition.
- People with debt: If you have debt, such as a mortgage or car loan, life insurance can help to protect your family if you die. The death benefit from a term life insurance policy can be used to pay off your debt, which can free up your family’s income to cover other expenses.
- People who are self-employed: If you are self-employed, you may not have access to employer-sponsored life insurance. Life insurance can help to protect your business if you die. The death benefit from a life insurance policy can be used to pay for things like business debts, payroll, and other expenses.
- People who are young and healthy: Life insurance is typically more affordable for people who are young and healthy. If you are in this category, term life insurance can be a good way to get affordable life insurance coverage.