What happens when my term life insurance policy ends?
Discover all your options for when your term life insurance expires. Convert, renew, or find a new policy — what will you choose?
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Rachael Brennan
Licensed Insurance Agent
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...
Licensed Insurance Agent
UPDATED: Aug 6, 2023
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Aug 6, 2023
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
How long should life insurance coverage last? Well, it depends on what type of life insurance you have. Term life insurance offers coverage and benefits for a fixed period, so it does expire at the end of that period. However, if you outlive your term life insurance policy, you have several options for continued life insurance coverage past the insurance expiry period. Read our article on how to buy term life insurance to learn more.
What do I do if I outlive my term life insurance policy?
When a term life insurance policy matures, you have a few choices for what to do next. The life insurance options available will depend on your insurance company, age, health, and family history as well as the term life insurance policy you have.
Below are the options you may have when your term life insurance policy matures.
Renew your term life insurance every year
Most term life insurance policies will allow you to renew the policy year-to-year until you reach age 95. Check with your life insurance company to learn the exact rules for renewable term life insurance.
When you renew your term life insurance by year, your premiums will likely increase. Although you can renew your policy to receive the same coverage and benefits, there’s no guarantee you can keep the same rates.
Renewing term life insurance helps you avoid proving your insurability via a medical exam or other documentation, which could be beneficial if you developed serious health conditions during your term policy that would make it difficult to buy a new policy.
Convert your term life insurance to a permanent policy
Many term life insurance policies offer a term conversion rider. Term conversion means you can change your term life insurance into a permanent life insurance policy without reapplying or proving your insurability again.
Although term conversion is more common now, the rules for converting a policy vary widely from insurer to insurer. For example, some insurance companies limit the types of permanent life insurance you can convert to, while others place time or age limits on the conversion.
Term conversion can be a great option for policyholders who want to maintain their life insurance without the hassle of finding a new insurer. However, since permanent life insurance works differently from term life insurance, be sure to understand the difference before committing to a new policy fully.
Get a new term life insurance policy
Younger policyholders in good health can keep premiums low by getting a new term life insurance quote and purchasing another term life insurance policy. You can adjust the length of the term or the coverage benefits when you buy a new policy to keep your premiums affordable.
Buying a new term life insurance policy makes sense if you’re still relatively young and healthy. It’s also a good option for people looking to ensure their dependents are cared for until they are financially independent.
Buy a permanent life insurance policy
If your policy doesn’t allow term conversion, you can also purchase a new permanent life insurance policy.
Buying a permanent life insurance policy requires more work to research and apply for, but if term life insurance no longer meets your needs, it can be a good solution.
Remember that permanent life insurance is often far more expensive than term life insurance. So be sure the benefits and coverage on your policy are worth the higher premiums.
Let your life insurance coverage lapse
You can let your policy lapse if you no longer need life insurance. You won’t need to renew, reapply, or convert — you can simply let it expire.
Without a life insurance policy, your loved ones won’t get financial support in the event of your death. Make sure your dependents are taken care of before deciding to let your term life insurance expire.
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Life Insurance Options After a Term Life Insurance Policy Ends
Not sure if switching to permanent life insurance is the best move for you and your family? Here’s a quick look at different life insurance types you might consider when your term life insurance policy ends:
- Whole life insurance. Whole life offers a guaranteed death benefit and rate of return. You’ll build cash value as you pay your premiums, which you can apply to your premium payments or borrow against in some instances. You can learn more about term life insurance vs. whole life insurance in this article.
- Universal life insurance. For more flexibility in your benefits, consider universal life insurance. You’ll have more freedom to change your benefits or premiums throughout the policy. However, your interest rates will mirror general interest rate trends.
- Final expenses insurance. If you don’t need a death benefit, final expenses insurance might be sufficient. Sometimes called burial insurance, it covers funeral costs upon your death. Rates are lower, but your loved ones won’t get a payout beyond burial expenses. You can read more about burial insurance for seniors in this article.
Whole vs. universal life insurance work differently from term life insurance. If you decide to purchase a permanent life insurance policy once your term policy matures, take the time to understand the details to give you and your loved ones the best possible benefits.
Case Studies: What happens when my term life insurance policy ends?
Case Study 1: Renewing the Policy
When Sarah’s term life insurance policy was about to expire, she decided to renew it on a year-to-year basis. Although her premiums increased, she was able to maintain the same coverage and benefits.
Renewing the policy allowed Sarah to avoid proving her insurability again, which was beneficial as she had developed health conditions during the term of her initial policy.
Case Study 2: Converting to Permanent Life Insurance
John had a term life insurance policy that was nearing its expiration date. He opted to exercise the conversion feature offered by his insurance company and converted his policy into a permanent life insurance policy without the need for a medical exam or proving insurability again.
While the premiums for the permanent policy were higher, John wanted to ensure he had lifelong coverage without the hassle of finding a new insurer.
Case Study 3: Purchasing a New Term Life Insurance Policy
After her term life insurance policy expired, Emily, who was still relatively young and healthy, decided to purchase a new term life insurance policy. By getting quotes and comparing different options, she was able to adjust the length of the term and coverage benefits to keep her premiums affordable.
Buying a new term life insurance policy allowed Emily to continue protecting her dependents until they became financially independent.
The Final Word on What To Do When Term Life Insurance Ends
When your term life insurance policy expires, you have plenty of options to maintain coverage in the event of your death. Talk to your insurer about the options for your existing policy and get information about other types of types of term life insurance too.
Frequently Asked Questions
What is a term life insurance policy?
A term life insurance policy is a type of life insurance that provides coverage for a specified period of time, known as the term. If the insured individual passes away during the term, a death benefit is paid out to the designated beneficiaries.
Can I extend my term life insurance policy if I still need coverage?
Some term life insurance policies offer a renewal option, allowing you to extend the coverage beyond the initial term. However, it’s important to note that the premium rates for the renewed policy may be higher than what you were paying initially. Additionally, the renewal option is typically limited to a certain age or timeframe, as specified in the policy contract. It’s best to consult with your insurance provider to understand the specific terms and conditions of your policy.
Can I convert my term life insurance policy into a permanent policy?
Many term life insurance policies offer a conversion feature, allowing you to convert the policy into a permanent life insurance policy, such as whole life or universal life insurance. The conversion option usually has a specific timeframe during which it can be exercised, often before a certain age or within a set number of years from the policy’s inception. Converting your policy typically does not require a medical exam, but the premiums for the permanent policy will be higher than what you were paying for the term policy. Contact your insurance provider to learn more about the conversion options available with your specific policy.
What happens if I outlive my term life insurance policy without any riders or conversion options?
If you outlive your term life insurance policy without any additional riders or conversion options, the coverage will expire, and no death benefit will be paid out. Term life insurance is designed to provide coverage for a specific period, and once that period ends, the policy’s obligations cease. It’s essential to review your insurance needs and consider your options before your policy ends to ensure you have appropriate coverage in place.
Your life insurance quotes are always free.
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Rachael Brennan
Licensed Insurance Agent
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.