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Some insurance policies also come to maturity over the years. It means your policy has completed its designed growth, and contains a large quantity of cash value. It's neither good or bad, but you do need to understand what it means for you and your financial plans.

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Whole life policies or permanent policies are meant to protect you for your entire life. However there are a few moving parts in a life insurance policy that can actually make it pay out once the insured person reaches 95 or older.

Sometimes called a hybrid of whole life and term life policies, universal life insurance is a less costly form of insurance that also builds cash value and covers the insured for life. However, the cash value and the death benefit are not linked, as they are in a whole life policy, Thus, if the insured lives to the maturity date, anywhere from 95 to , the policy will pay the cash value to the insured as an endowment, but this may be significantly lower than the death benefit.

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