What Happens When My Life Insurance Policy Matures?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaIf by “matures” you mean the end of the policy period, like the end of 20 year term life insurance policy, without converting it to a permanent policy… coverage is terminated. If by “matures” you mean a permanent policy that endows at age 100 or age 121, then there are a couple of scenarios. Unless otherwise stated in the policy, coverage ends on the maturity date. All policy loans of cash value, whether internal and/or borrowed out are recharterized as phantom income and the gain is taxed as ordinary at the effective tax bracket rate of the policy owner.Answered on July 9, 2013+01+1 this answer
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