Maturity Date

The maturity date is the date on which a life insurance policy endows — meaning the policy's cash value equals the face amount — and the policy pays out the face amount to the policyholder if still living. In traditional whole life insurance, policies historically matured at age 100, at which point the insurer would pay the face amount as a living benefit. Many modern whole life and universal life policies are designed to mature at age 120, extending the tax-deferred growth period. Reaching maturity while alive is increasingly common as life expectancy increases. A payout at maturity is a taxable event to the extent it exceeds the policy's cost basis (premiums paid).