Policy maturity is the point at which a life insurance contract reaches its stated maturity age and the insurer pays out the policy maturity value, typically equal to the death benefit or accumulated cash value. Traditional whole life policies may mature at age 100 or 121, while some older contracts mature earlier. At maturity, coverage usually terminates and the insurer pays the benefit directly to the policyowner or insured, who may owe income tax on any gain in non-qualified policies. Modern contracts often extend the maturity age or allow the death benefit to remain in force beyond age 100 to avoid forced taxation and maintain protection for very long-lived insureds. Policy provisions and carrier administrative practices determine exactly what happens at maturity and how values are reported for tax purposes.

In practice, policy maturity is most relevant for older blocks of permanent life insurance and for advanced age planning. Advisors may review in-force ledgers to determine whether a client's policy is projected to reach maturity and what options exist as that date approaches. Some carriers allow policyowners to extend maturity, convert to a different product, or reduce the face amount to limit taxation. When a policy actually matures, benefits are typically paid to the insured or policyowner rather than to traditional beneficiaries, which can affect estate planning. Producers and wholesalers often coordinate with tax advisors to clarify whether any gain will be taxable, how it will be reported, and whether alternative strategies-such as 1035 exchanges-should be considered well before maturity occurs.