A term life insurance policy can be a powerful, cost-effective
tool for helping your family meet its financial obligations in the
event something happens to you or your spouse. But what happens
when the term ends? Here is what you need to know to maintain peace
of mind.
Coming to a Crossroads
It is common for young couples to buy 20-year (or longer) term
life policies when their children are young or they have purchased
a home. The idea is that, when a policy reaches the end of its
term, children will be financially independent, the mortgage will
be largely paid off and the policyholders will have accumulated
enough savings.
But that does not always turn out to be the case. Children may
remain dependent on you well into their 20s, mortgage payments can
continue indefinitely (especially if you have refinanced) and
retirement savings may fall short of expectations.
