What Happens When A Life Insurance Policy Matures? 
Life insurance maturity generally refers to the contract ending point where coverage ends and any cash values are distributed . In our modern application of life insurance maturity dates extend to age 121 , with some life insurance companies using language and not age as their maturity date , i.e. the life of the insured . Any cash values that exceed basis in a policy maturity event are subject to ordinary income tax . 