How Long Does Life Insurance Last

The simple question how long does life insurance last is not all that simple. Life Insurance lasts the length of time that the contacts states with several caveats.  The policy must be in good standing and the yearly premiums must be paid on time each year.  Level term life insurance lasts until the term length expires or any potential renewable options expire.  Whole life insurance has the ability to last for the entire life of the insured or the contract end date which may often be 100 or 120.

This article is all about how long life insurance lasts.  In it, we will attempt to explain how long the various forms of life insurance last.  Most forms of life insurance generally last until either your premiums stop getting paid OR until the policy coverage period ends.  In the case of term life insurance policies - they typically last until the end of the term period.

The simplest way to begin to gauge how long a life insurance policy lasts is the type of policy that it is.  We have noted many of the most important forms of life insurance in the US.  This is not the entire list thought.

Term life insurance coverage lasts for a limited period of time.  This is the main reason that term insurance is far less expensive than whole and universal life insurance.  If you are thirty years old and purchase a twenty year policy, then the premium and life coverage will last until you are 50 years old.  This is pretty simple to explain.

30 Years Old + 20 Year Term Policy = Might Equal Coverage Till Age 50

Another Example could be a twenty five year old that purchases a thirty year term policy through Banner Life Insurance:

25 Years Old + 30 Year Term Policy = Might Equal Coverage Till Age 55​​​​​

With term insurance it it important to note that the premium and coverage length are typically the same. In other words, you pay until their is no coverage.  This is sometimes not the case with other forms of life insurance in certain situations.

Of Note:

Many forms of term insurance may offer further coverage beyond the stated term length.  However the premium prices will baloon up to a much higher cost.  As an example of this a twenty year term policy could have twenty years of level premiums followed by much higher yearly costs that go up each and every year.  Whereas the original 20 years may have only been $325 per year, the 21st year of coverage cold skyrocket to $2,135.  Therefore in theory some term policy coverage can extend (possibly) beyond that 20 year policy assuming you make those high premium payments.

Whole or permanent life insurance is intended and sold to last forever.  However that assumes that the premium payments are made each and every year.  A large percentage of whole life policies are cancelled long before their natural end, potentially due to their high costs.

However both non participating and participating whole life insurance policies last until either the end of the owners life or an end date stipulated in the contract.

The end date in the contract may be age 100 or 120, when the policy will pay out in full.  At this point the whole life insurance policy will end.

Of Note:

It is possible that whole life insurance policies can exist well beyond the premium payment period. Therefore the Whole Life Insurance Policy premiums may end before the Whole life insurance policy does. This is due to a variety of factors.  First off many types of whole life insurance policies such as ten pay policies end after a limited amount of payments.  Second, the policy may be changed to reduce coverage or other mechanics of the contract.  Third, dividend payments may allow the potential cessation of premium payments.  There are other reasons as well.

In general this answer is very similar to the question about how long does Whole life insurance last.  But with a few minor differences.  Universal life insurance, assuming that the premium payments are made on time and the contract is in good standing probably can last for the entire life of the insured or the policy end date.  The policy end date will be laid out in the contract and may be ages 100 or 120.

There are three general types of Universal Contracts: Guaranteed Universal Life (GUL), Indexed Universal Life (IUL), and Variable Universal Life (VUL) each of them have nuances.  Since at least two of them have a more severe sense of market performance it is difficult to state with certainty the definitive length of these life insurance contracts.  Of the three GULS probably are the most solid in terms of guaranteed coverage length.  Given the complexities and past history of universal life insurance policies it is difficult to simply state the definitive length of the given contract.

You have purchased a policy and are wondering what could change the length of a given insurance policy. Below is a possible list of reasons that a policy coverage legnth could (at least in theory) be changed:

These are obviously generalizations made here to help demonstrate when a policy, possibly could be changed. The exact circumstances are laid out in your life insurance contract. In general many policy lengths cannot be changed.

The most length changes are likely from portability and convertibility.

Policies get cancelled all the time by request and for non payment.  It is rare that policies are allowed to be changed, but I have included this because technicality there are minor ways of this being done in certain rare situations.

I have added the legal action comment because, I would imagine that this could happen.

The second to last bullet point about fraud is a very complex subject.  This would usually only happen in the first two years.  State laws on this differ.

Up until now we have focused on how long life insurance does last, as opposed to how long it 'Should Last.'  Life Insurance Should last until you no longer have a financial need.  That financial need is often until your youngest child is out of the house and possibly through college.  This may sound different that what many insurance agents may instruct you.  Some agents believe that you need life insurance forever. We find this to be too much for many consumers.  If you are saving money and doing a fair job of it, we believe that insuring yourself for your entire life could be a waste of money. 

Life insurance works by providing a death benefit amount to cover a living person's life. If that person dies during the policy coverage a sum of money is paid to the beneficiary.  The life insurance contract must be in good standing and current on their bills (premiums.)

The length of the life insurance policy is depended on the contract itself.  Your life contract should state all of the term and provisions, including the length of the policy in the actual document.  In general a term life insurance policy lasts as long as the term.  A whole life insurance policy lasts for your entire life.  All of these statements are depended on the policy being in good standing and the policy premium being paid.

Thanks for Reading our post about "How Long Does Life Insurance Last?"

Feel free to contact us with questions.  However do look at your own policy to find the answer to a specific question.

scott at marindependent.com