What is it called when an insured decides not to continue coverage after the policy period?

The correct term for when an insured decides not to continue coverage after the policy period is nonrenewal. This situation arises at the end of a coverage term when the insured indicates that they do not wish to extend or renew their insurance policy. Nonrenewal signifies a deliberate choice by the insured to allow the policy to lapse without taking action to renew it for an additional period.

Understanding nonrenewal is important because it directly affects the insured's coverage status and can influence future insurance applications or premiums. It differs from cancellation, which typically implies that the insurance company or insured has decided to terminate the policy before it naturally expires, often due to specific reasons during the policy’s active term. Meanwhile, termination can also indicate an end to coverage but is often associated with broader contexts, such as when a contract ends due to external factors. Suspension would refer to a temporary halting of coverage rather than an outright decision not to renew.