What happens if the policy matures but the holder is still alive.

If a policyholder's life insurance policy reaches its maturity date but they are still alive, the policy will pay out the cash value of the policy to the policyholder. The cash value is the amount of money that has accumulated in the policy over time through premiums paid and interest earned. At maturity, the policyholder has several options to receive the cash value. They can choose to take a lump sum payment, which will be subject to income tax if the cash value exceeds the amount of premiums paid. Alternatively, they can choose to continue the policy and receive regular payments, or they can choose to use the cash value to purchase an annuity. It is important to note that if the policyholder continues the policy, the death benefit will typically decrease over time as the cash value is used to fund the policy. Additionally, continuing the policy may require the policyholder to pay additional premiums, which will reduce the cash value. If the policyholder does not take any action when the policy matures, the insurance company may automatically pay out the cash value or offer to convert the policy to a different type of policy. It is important for policyholders to review their options carefully and consult with their financial advisor before making a decision.