What does termination by expiry indicate in an insurance policy?

Termination by expiry in an insurance policy indicates that the policy is no longer valid after a specified period. This means that the insurance coverage is designed with a defined duration, and once that period elapses, the policy will not provide any further coverage or benefits. This is commonly seen in term life insurance or certain types of temporary insurance, where the insured must reassess their coverage needs after the policy expires.

This concept is important for policyholders to understand, as they need to be aware of when their coverage ends and what options may be available to them for renewal or replacement. It emphasizes the necessity for regular reviews of one's insurance needs, especially as expiration approaches.

The other choices either do not accurately reflect what termination by expiry means or relate to specific conditions that are separate from the fundamental nature of an expiry clause in an insurance policy. For instance, coverage continuing indefinitely and termination only by the policyholder pertain to different contract characteristics and don't accurately describe the implications of an expiry term. Similarly, benefits ceasing upon reaching a specific age suggests an age limitation, which is not directly associated with the concept of expiry itself.