What is the maturity date of an IUL policy?
The maturity age varies by insurer and product, and the policy schedule states it. On a universal life policy such as IUL, the insurer typically pays the cash surrender value at maturity if the life insured is alive, and the policy ends. Some designs let cover continue beyond the maturity age, automatically or through an extension option. HMRC guidance notes that any option to extend has to be legally completed before the maturity date; once that date passes, the policy has ended.
Maturity also matters for tax. In the UK, the maturity of a non-qualifying policy, such as an international IUL, is a chargeable event under section 484 of the Income Tax (Trading and Other Income) Act 2005, so any gain is assessed at that point. The policy maturity date is separate from the segment maturity date, the end of each 12-month index segment in annual point-to-point crediting.
The maturity date is the date set in a life policy, usually when the life insured reaches a stated age, on which the policy is due to end and pay out under its terms.
