What is the consequence of not paying premiums for term life insurance?

When premiums for term life insurance are not paid, the coverage stops immediately. Term life insurance policies are designed to provide coverage for a specified period as long as premiums are paid. If a policyholder fails to make their payments, the insurer is not obligated to continue providing coverage beyond the last paid premium.

The nature of term life insurance is such that it does not accumulate cash value, which means that there is no grace period beyond the stipulated time frame for coverage. Therefore, once premiums are not paid, the policy becomes void, and the insured individual would no longer have a death benefit provided by that policy. This is a critical aspect of maintaining term life insurance, as ongoing premiums are essential for the policy to remain in force.