Expiry and lapse are not the same thing. Expiry means your policy has reached the end of its agreed policy term. The life cover ends at the expiry date specified in the policy, subject to its terms. Lapse means the policy has ended before its scheduled expiry because premiums were not paid as required, after the applicable grace period. Depending on the product and its terms, a lapsed policy may still be eligible for revival. So, if your policy has reached its scheduled end date, you are dealing with expiry.
If it stopped being in force because of unpaid premiums before that date, you are dealing with lapse. Check your policy schedule or policy servicing records to confirm your policy status, expiry date, and premium status before deciding what to do next.
In what circumstances does a Term Insurance Policy expire?
Term Insurance expires when it reaches the end of the policy term specified in the policy document. For example, if the policy is issued for 30 years, the life cover generally ends when those 30 years are completed, subject to the policy terms. Expiry is therefore linked to the scheduled end date of the policy, not to whether you have paid premiums regularly throughout the term.
When does a Term Plan lapse?
A Term Insurance Policy can lapse when the premium due is not paid within the applicable grace period. In this situation, the policy may stop being in force before its scheduled expiry date, subject to the product's terms. A lapsed policy may have a revival facility, depending on the product and applicable conditions. These may include paying outstanding premiums and applicable charges and meeting the insurer's revival requirements.
If you stop paying premiums, does Term Insurance end immediately?
No. Missing a premium does not necessarily mean the policy lapses on the same day. A policy generally has an applicable grace period during which the premium can be paid, subject to the policy terms. If the premium remains unpaid beyond the applicable grace period, the policy may lapse. The exact grace period and consequences of non-payment depend on the policy. Check your policy document to understand the applicable premium payment conditions.
Can a lapsed policy still be brought back into force?
Possibly. Many Insurance Policies provide a revival period, but the duration and conditions vary by product. For applicable ABSLI Term Plans, revival may be available within the specified revival period, subject to conditions such as payment of outstanding premiums with applicable interest or charges, evidence of insurability, and approval under the insurer's underwriting policy. A lapsed policy should therefore not be treated as permanently closed without first checking its revival provisions. The policy document and current insurer terms should be referred to for the applicable conditions.
What happens to your life cover when the policy expires?
Once the policy reaches its scheduled expiry date, the life cover under that policy generally ends, subject to its terms. This means the policy will generally not provide a death benefit for an event that occurs after the cover has ended. The expiry date is therefore important even if you have been paying premiums regularly throughout the policy term. If you still have financial responsibilities that depend on your income, the end of the policy is a point to reassess whether you have sufficient life cover elsewhere.
What happens to a claim if the policy expires after the insured event?
The timing of the insured event matters. If the insured event occurred while the policy was active, the claim can be assessed according to the policy terms and applicable claim requirements, even if the policy subsequently reaches its expiry date. However, if the insured event occurs after the policy has expired, the expired policy will generally not provide life cover for that event. For a specific claim, the policy contract and circumstances of the claim determine the outcome.
Do you get your premiums back when your Term Insurance Policy expires?
Not necessarily. It depends on the type of Term Plan you have. A regular Term Policy is designed to provide life cover for a specified period. The premiums you pay provide this cover during the policy term. They do not automatically accumulate into a maturity amount. So, if the policy reaches its expiry date and no benefit is payable under its terms, you may not receive a payout simply because the policy has ended.
However, some Term Policies may include a maturity benefit or Return of Premium feature. In such cases, the amount payable, if any, will depend on the specific policy terms. Check your policy document to understand whether any benefit is payable when your policy ends.
What are your options after Term Insurance has expired?
If your policy has expired:
- Check for a continuation facility: See if the policy offers any renewal or conversion option.
- Consider a new Term Policy: If you still need life cover, assess a new policy based on your current needs.
- Let the cover end: If the financial responsibility you bought the policy for no longer exists, you may not need additional cover.
What are your options after Term Insurance has lapsed?
If your policy has lapsed:
- Check revival eligibility: Find out whether the policy is still within its applicable revival period.
- Revive the policy: If eligible, fulfil the required conditions, which may include paying outstanding premiums and applicable charges.
- Consider fresh cover: If revival is not available or suitable, assess a new term insurance policy based on your current requirements.
Should you buy a new Term Plan rather than continuing the old one?
It could, particularly when your financial situation has changed. You may now have a different income, a larger Loan, additional dependents, or a different preferred policy term. A new application will also be assessed based on your age, health, and other underwriting information at that time. Compare any continuation option with a new policy before the existing cover ends. Focus on cover, policy term, premium structure, exclusions, and benefits, not premium alone.
What should ABSLI policyholders do if their policy is nearing expiry or has lapsed?
If your ABSLI Policy is nearing expiry, first confirm the policy maturity date, and review whether you still need life cover. You can use the ABSLI Term Insurance calculator to estimate the premium for a cover amount you are considering. If your policy has lapsed, check its revival eligibility and applicable conditions. You can also use ABSLI's policy servicing and premium payment options to manage the policy.
If the policy has already expired and no continuation facility applies, you can review ABSLI Term Plans based on your present requirements.
September 15, 2026
5 mins read
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