What Does Termination Date Mean?
A termination date is the day an insurance policy ends. It can be a scheduled date, such as the end of a one-year auto insurance policy. In addition, it may also be unscheduled in the event one party no longer wants coverage or if the insured is no longer eligible, such as an employee who is fired.
Insuranceopedia Explains Termination Date
Some insurance policies have a scheduled termination date. For example, a 5-year term life insurance’s coverage ends after 5 years should the insured live that long. At the termination date of an insurance policy, the insured may be able to renew their policy. If not, they must buy a new policy to enjoy further coverage.
Insurance policies also end coverage if the insured does not hold up their end of the contract. In such cases as missed premium payments, the contract indicates how long the insured has to pay before the insurance company terminates the policy.