What happens to a policy at the end of its contract term?

At the end of its contract term, a policy typically terminates unless otherwise specified in the policy agreement. This means that coverage under the policy ceases, and the insured is no longer provided benefits under that specific contract. Termination is a common outcome for many types of insurance policies when the policy period concludes, and it indicates that the insurance company will not cover any further claims unless a new policy is initiated.

It is important to note that some policies may offer options for renewal or extension, but the standard procedure upon reaching the end of a contract term is for it to terminate. With this understanding, the insured may need to evaluate their coverage needs and possibly seek a new policy to maintain protection against risks.