When does a term life insurance policy typically mature?

A term life insurance policy typically matures upon the insured's death during the term of the policy. This is fundamental to how term life insurance is structured; it is designed to provide a death benefit to the beneficiaries if the insured passes away within a specified period, known as the term. If the insured dies during this coverage period, the insurance company pays out the agreed-upon benefit to the beneficiaries, fulfilling the policy's purpose.

The other scenarios provided do not accurately represent how maturity works in term life insurance. If the insured reaches the age specified in any individual agreement without having died within the policy's term, the policy simply expires without any payout. Similarly, the insurer does not have discretion over when the policy matures; it is bound to the terms outlined in the contract regarding the death of the insured during the defined period.