Let’s imagine that you took out a term life insurance policy and you have come to the end of that term. You haven’t passed away, so there is no payout. 🙏 What do you do now?
Well, there are a few options for you under this circumstance and we are here to explain what they are. 💛 You may want to learn the difference between term and whole-of-life insurance and read about the pros and cons of each type of policy before purchasing. At Bequest, we offer term life insurance policies. Term life policies typically last for a predetermined period of time, such as 25 years, and if you outlive the policy there would be no payout.
Not sure what to do next after your life insurance finishes? Here are some options:
You can do nothing
People can take out a life insurance policy to cover the length of their mortgage, or until their youngest kid is no longer ‘financially dependent’. Taking out term life insurance cover for the duration of a mortgage agreement is fairly common. 🏠
So, if you find yourself in this position and your mortgage has been completely paid off, you may not see the benefit of taking out further cover. Or as mentioned above, if you no longer have any dependents (https://bequest.com/articles/parenting/7-self-care-tips-parents/), life insurance might not be necessary anymore. This is totally personal to each individual, so figure out what works best for you.
Extend your existing cover policy
Most term life insurance policies can be extended depending on your age and this is an option you may want to think about if you feel happy with your current policy. There would normally not be a requirement to do a medical exam but the insurance company could increase your premium if you do decide to extend. 🏥
We don’t currently offer extending your policy but you are able to make changes to and add onto your current life insurance policy with us.
Extending your existing policy could be seen as a good option if you have experienced a change in health because you may not qualify for an entirely new policy, particularly if your condition is terminal.
Convert your life insurance policy
It may be possible to convert your term policy to a permanent one, such as a whole life policy, but once again this is entirely dependent on your individual insurer. Much like extending, you would probably not need to do a medical or start the application process all over again. However, it’s likely that your premiums would increase and each policy may have a specific deadline which you would need to be aware of as some companies may not allow you to convert within the final year of your cover, for example.
Take out a new cover policy
Just for a second, think about what has changed in your life…maybe you have invested in property since your original life insurance policy was taken out, or you have significantly more savings now? Perhaps you only planned on having two children but actually have five and each one of them is planning on going to university. 📚
Taking out an entirely new policy may be the best option for you in order to take into account your change in circumstances. A policy that was perfect for you ten years ago, may not meet your needs or family life now. This could be a good chance to consider what you and your loved ones need in terms of life cover, so it may be worth shopping around a little to figure out if you could get a better option. Our article “How Much Life Insurance Cover Do I Need” may help you to figure out what type of and how much cover is perfect for you. Remember that you can also have more than one policy at a time, so if you want to top up or purchase with another company, you are more than welcome to do so! 👏
Term life insurance at Bequest
At Bequest, our life insurance policies are designed to be hassle-free and affordable. 💯 So, if you’re wondering what to do now that your term policy has ended, we would love to help answer any questions you may have. Our Life Insurance FAQs may be a great place to start you on your way to the ideal life insurance policy for YOU! 🤩