When a term life insurance policy reaches its expiration date, it typically just ends. The insurance company will send a notification that the policy is no longer active and the policyholder will no longer need to pay premiums. This means that there are no longer any potential death benefits associated with the policy. It is important to note that the policyholder may have the option to renew the policy or convert it to a permanent life insurance policy.
If the policyholder chooses to renew, they will need to pay a new premium and the coverage will be extended for another term. If they choose to convert, they will need to pay a higher premium but will have coverage for their entire life. In some cases, the policyholder may be able to receive a refund of their premiums if they decide not to renew or convert their policy. This depends on the type of policy and the insurance company, so it is important to check with your insurer before making any decisions.
It is also important to note that if the policyholder dies after their term life insurance policy has expired, their beneficiaries will not receive any death benefits. This is why it is important to review your life insurance needs regularly and make sure that you have enough coverage for your family's needs.