Expiry

What Does Expiry Mean?

Expiry, in the context of insurance, refers to the termination of a term life insurance policy at the end of its coverage period.

Insuranceopedia Explains Expiry

Term life insurance policies provide coverage for a specified period, which determines both the duration of coverage and the validity of the policy. Once this period ends, the policy expires, and the policyholder loses coverage. However, policyholders may opt for term life policies with renewable, convertible, or both options. The renewable option allows policyholders to renew the policy without reapplying for eligibility, while the convertible option enables them to convert the policy into a permanent one. Converting usually costs more than buying another term policy because permanent coverage is priced to last for life, so looking at the cost difference between term and permanent life insurance before the conversion deadline helps avoid surprises. In both cases, the contract will specify a final expiry age or date, after which the policyholder can no longer benefit from the respective feature. If the policy expires without renewal or conversion, getting new coverage means applying again at current rates, which are usually higher because of older age. Comparing quotes from the best life insurance companies tends to matter more at that point than it did when the original policy was first purchased.