Definition

• A mature insurance policy is one in which the guaranteed cash value of the policy equals the total face value of the policy. Insurance policies gain their cash value from the premiums you pay. In most cases, the longer you pay your premiums, the closer you will get to having a mature policy. Typically, mature insurance policies refer to most types of life insurance policies (e.g., whole, universal), with the primary exception of term life insurance. Policies usually are set to mature, or endow, when the policy holder reaches age 100. However, every insurance company is different. The date of maturity thus depends on your premium rates and the face value of the policy.
  
  

What a Matured Policy Means

• When you have a mature policy, you have paid every premium to a date or age specified in the policy. Having a mature policy means that the insurance company should pay you both the face value and cash value of the policy. If you are still alive when the policy matures, you can use the life insurance payment to cover your expenses until you die, as well as to arrange settlement of your estate. You no longer have to make premium payments once the policy is matured and the insurance company has issued you a check.
  
  

Company Contact

• Often, insurance companies will notify you when your insurance is about to mature. This is because the policy effectively terminates once the insurance company pays you the value of the policy. If you want to continue insurance coverage after the insurance company pays you, you typically will need to get a new policy.
  
  

Considerations

• Most life insurance policies endow when you are 100 years old. Although people are living longer than in the past due to advances in technology and increased knowledge of the body and disease, most policy holders do not reach age 100. This means that most insurance policies don't mature. Most people surrender their policies for the cash value, or the insurance company pays out a benefit when the policy holder dies. Because a mature policy has more cash value, you get less from your policy if you cash it in early or if you die prior to the date of maturity.