When Does Term Life Insurance Expire? Every term policy comes with an expiration date. If you outlive your policy: • Your coverage ends • Your beneficiaries are no longer protected by that policy • No death benefit is paid if you pass away after the term 👉 Need a refresher? Read: How Term Life Insurance Works: Everything You Need to Know.
Your Options When a Term Policy Ends
1. Do Nothing (Let It Expire) • Your coverage ends and premiums stop. • Best if you’ve built wealth, paid off debts, and no longer need protection.
2. Renew Your Term Policy • Many insurers allow you to renew annually after the original term. • Pros: Extends coverage. • Cons: Premiums increase sharply as you age.
3. Convert to Permanent Insurance • Some policies include a conversion option. • Lets you switch to a whole life or universal life policy without a new medical exam. • Pros: Lifetime coverage + cash value growth. • Cons: Much higher premiums. 👉 Compare options: Term vs. Whole Life Insurance: Which Is Right for You?
4. Buy a New Policy • You can apply for a new term or permanent policy. • Approval depends on current health and age. • Pros: Can lock in new coverage if still healthy. • Cons: Premiums are higher the older you are.
Should You Plan Ahead Before Your Term Ends? Yes — waiting until your policy expires often means fewer choices and much higher costs. Consider: • Your age → Premiums rise sharply after 50. • Your debts → Mortgage, loans, or college costs may still need coverage. • Your family’s financial security → Will your spouse or kids still depend on your income?
Example Scenarios
Case 1: Mortgage Almost Paid Off • You’re 55, with 5 years left on your mortgage. • A short-term renewal might make sense instead of buying a new 20-year policy.
Case 2: Kids in College • You’re 50, with kids entering college. • Converting part of your policy into whole life can cover long-term needs while protecting education costs.
Case 3: Financially Independent • You’re 60, with no debt and strong retirement savings. • You may choose to let your policy expire.
Common Questions
1. Do I get money back when my term ends? • No, unless you bought a “return of premium” rider (higher cost).
2. Can I keep the same premium after my term? • No, renewal premiums increase significantly with age.
3. Is it better to convert or buy a new policy? • It depends on your health, age, and financial goals.
Final Thoughts When your term life insurance ends, your protection stops — but you have options. You can renew, convert to permanent coverage, or apply for a new policy. The right choice depends on your age, health, debts, and family needs. The key is to plan before your policy expires so you’re not caught off guard.
👉 Explore related guides: • The Best Term Lengths Explained: 10, 20, or 30 Years? • The Pros and Cons of Term Life Insurance Compared to Other Policies • Top 10 Myths About Term Life Insurance (Busted!)