How Does Term Life Insurance Work If You Don't Die?

Since term life insurance is temporary coverage for the term of your policy, if you outlive the term, your life insurance coverage expires with no payout of any death benefit.

So, if you have a 10 year term life plan, and you are alive when the ten year period ends, there is no more coverage and no payout of a death benefit.

However, if you die during the term of your term life policy, the death benefit is paid out to the person or persons you chose as beneficiary to your life insurance policy.

If your term life insurance ends and you still need life insurance, you may choose to renew your policy for another term usually of 10 years, with an increase in premium.

Learn more about how term life policies work.