It's ultimately up to your beneficiaries to decide how to use the cash payout. People often choose to use it for things like:

• Home mortgage or rent
• Children's education
• Lost income
• Living expenses
• Loans and debt 
• Funeral costs

If you pass away while your coverage is in force, your beneficiary files a claim with your insurance carrier (as identified on your policy documents. Generally, your carrier will pay the claim to your beneficiary in a lump-sum payment which is usually tax free. For example, if you purchase $1 million in coverage, your beneficiary will receive a tax-free $1 million lump-sum payout.

A claim may not be paid if underwriting finds that parts of the application were answered untruthfully or if the claim is the result of death by suicide within the first two years of the policy being in force. Refer to your policy for details.

If you do not pass away during your term, you have options when your term ends:

• You can renew your term annually at a higher rate, with no additional underwriting.
• You can apply for a new policy with a fresh term length and coverage amounts.
• You can decide to let your coverage expire and not replace it.