What happens if you outlive your life insurance term?
All good things come to an end, or so the old adage saying goes, and if you’re nearing the end of your life insurance term, you may be wondering what to do once that final date has passed.
Of course, in one sense, the fact you’ve outlived your life insurance is a good thing. As with most insurance, the hope is that you’ll never actually have to use it.
But what happens if you want continued life cover after your policy term’s end date? What are your options? What are the costs? In this article we’ll outline your options.
When does the term on my life insurance end?
The end date of your life insurance ‘term’ – the length of time your cover lasts - depends on how long you chose when you took out the policy. If you’re not sure when exactly your cover comes to an end, take a look at your policy document.
Do I still need life insurance once my policy ends?
Once you know when your cover is due to end, it’s worth asking yourself whether you’ll actually need further life insurance. It’s quite possible that your circumstances will have changed since you originally took out your policy, and the factors that led you to buy cover years ago may no longer apply.
Children, mortgages, and a lack of long-term financial security are some of the main reasons people buy life insurance – it gives them peace of mind that outstanding debts or expenses could be covered if they die during the length of the policy. But if your children have grown up, your mortgage has been fully repaid, you outlive your life insurance and you’ve accumulated other financial assets or savings, you may find that it makes little sense for you to continue paying for life cover after your existing policy has come to an end.
We encourage you to speak with a financial adviser if you’re unsure.
Buying another policy
If you decide that taking out a new life insurance policy is the best option for you, you should bear in mind that all things being equal, your premiums are likely to be higher than they were for your original policy now that you’re older.
As with all new policies, you’ll need to complete a full application before we can determine whether we can offer you cover. This includes a full medical and lifestyle assessment.
Eligibility will also depend on your age.
Can I extend the length of my Legal & General life insurance policy?
You can apply to extend the length of your policy. This could affect the premiums that you pay and we would have to assess any change request based on your circumstances at the time.
Other life cover options from Legal & General
If your existing life insurance is nearing the end of its term and you’re a UK resident between 50 and 80 years old, our Over 50s Life Insurance may be an option worth considering.
Our Over 50s Fixed Life Insurance could allow you to leave a fixed cash sum to your loved ones when you pass away, which could be used to help contribute towards your funeral costs or be left as a gift.
If you’re nearing the end of your existing life insurance term, it’s worth taking some time to think about whether you’ll really need further life cover once that date has passed, now that your circumstances may be very different to when you first took out your plan.