What is term life insurance? Term life insurance is a type of life insurance that provides coverage for a set period of time, usually up to 20 or 30 years. It is the less expensive option and straightforward type of life insurance on the market, with premium rates largely based on age, health, occupation, and lifestyle factors. Once the term expires, policyholders can face an important decision: what to do next?

When a term life insurance policy ends, three primary options may be available to policyholders.

1. Applying for a new term life insurance policy

Purchasing a new term life insurance policy when the current policy ends helps ensure financial protection for loved ones. Choosing and buying a new life insurance policy can be overwhelming, but it doesn’t have to be. By understanding the different types of policies available and researching prospective companies, individuals can make an informed decision that will best fit their needs. Comparing term life insurance rates and taking advantage of the resources available from independent agents or online providers can help someone find the right plan for them.

2. Converting the current term life insurance policy into a permanent life insurance policy

A conversion of a term life policy into a permanent life policy is an important decision to make when the current term policy is nearing its end. Converting can help provide individuals and families with greater financial security by helping protect them against risks for their entire lifetime. Also, converting to a permanent policy can provide additional features, such as the potential to build cash value, access cash values through loans or withdrawals, and help pay for long-term care expenses. It is important to understand the options available when considering converting a term policy into a permanent life insurance policy to make an informed decision about their protection needs and budget.

3. Let the policy lapse

Letting the policy lapse means that the policyholder stops making their premium payments, and the policy no longer remains in force. While this may seem like a good idea at first glance, it’s important to remember that choosing this option means any beneficiaries will not receive any death benefits if something happens to the policyholder before they renew or purchase a new policy.

Bottom Line

By understanding their options and taking some time to research the different plans available, policyholders can have added peace of mind knowing that their loved ones are cared for in case something happens to them.

Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. 68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400.

In New York, NY68100-NY68400. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Virginia, Policies ICC0965JTO & ICC0965JWO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Q60000 series: Term: In Delaware, Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.

Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-

AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).

This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.

Aflac does not offer Universal or Variable Universal life insurance.

WWHQ | 1932 Wynnton Road | Columbus, GA 31999

NY | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211

Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.

See Campaign: https://www.aflac.com/

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