What Happens When My Life Insurance Policy Matures? 
If 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 . 