1. 4330 POINTS
    Jerry Vanderzanden, CLU, ChFCPRO
    Co-Founder, Coastal Financial Partners Group, California
    Most term life insurance expires before the life insured does! The statistics are not generally shared by carriers and tend to vary from company to company. The consensus it is it less than 5% and probably under 1% in many life insurance companies. Most policies expire or are converted to permanent before the expiry date.
    Answered on May 8, 2013
  2. 63291 POINTS
    Peggy MacePRO
    CEO and Senior Agent, Outlook Life, Inc, Most of the U.S.
    If people pass away while holding active Term life insurance policies, their policies will pay out nearly 100% of the time. The exceptions would be suicide during the first two years, or having filled out the life insurance application fraudulently during the first two years, just as with Permanent life insurance.

    Also, unless their policy is graded during the first years and death occurs during the graded period, the Term life insurance policy will pay 100% of the death benefit.

    When comparing the % of the number of life insurance policies purchased with the number of persons who actually passed away while their Term policies were in effect, the % is small. But for those who passed away while having Term life insurance, pretty close to 100% of them had 100% of their death benefit paid to their beneficiaries. And that is why people buy life insurance.
    Answered on May 8, 2013
  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®PRO
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The number of term life insurance policies that expire before the death of the insured is simple to determine.  If you look at a mortality table and see how many people your age are expected to die in the coming year, you will have an idea of what percentage of one year term policies would have expired without paying a death benefit.  Look at the same table for ten, or twenty years to get an idea of the probability that a policy will pay a death benefit.  Don’t forget that term insurance is frequently purchased by younger people.
    Answered on May 30, 2014
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