Whether it’s in order to ensure loved ones get to keep the house, or to allow them to receive a pay out should the worst happen, there’s countless reasons why a person may opt for life insurance. The type of policy may depend on why they take it out. Can life insurance expire? The answer could be affected by what life insurance option that a person has taken out.

This includes level term insurance.

These policies last for a pre-agreed number of years, and pay out a set amount if the policyholder dies during this time.

It can either cover a fixed amount of debt, such as an interest-only mortgage, or it can provide a lump sum for dependants a person may have, in the event of one’s death.

As it is agreed for a certain number of years, the insurer will not payout after this time is up.

Another type of option is decreasing term insurance.

This is also known as mortgage protection.

It lasts for a pre-agreed number of years, and as the Money Advice Service explains, this can match the length of a mortgage – paying out if one dies during that time.

However, unlike level term insurance, a decreasing term option sees the potential pay out reducing over time.

That’s because it is designed to be used alongside a repayment mortgage, where the outstanding loan also decreases over time.

Again, this type of insurance expires at the end of the term.

Whole-of-life insurance is another type of cover, and as the name suggests, this lasts for the entirety of the rest of a person’s life.

This means that no matter when one dies, they should get a pay out.

Other types of life insurance include family income benefit insurance.

According to the Money Advice Service, this type of policy is similar to level and decreasing life insurance, expect that it is paid as a regular income throughout the remainder of the term – rather than a lump sum.

Can a life insurance claim be denied?

A provider may refuse to pay out for a number of reasons, but it seems moving to certain countries could also affect one’s claim.

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