What to Do When Your Term Life Insurance Policy Expires

Term life insurance provides coverage for a set period—typically 10, 20, or 30 years. Because many people outlive their term, it’s common to wonder what comes next once the policy reaches its end date.

Whether your policy is about to expire or it already has, here’s a clear look at what it means and what options you can consider moving forward.

What It Means When a Term Life Policy Ends

Life insurance generally comes in two forms: permanent and term.

• Permanent life insurance lasts your entire life and guarantees a payout to your beneficiaries whenever you pass away.
• Term life insurance only covers you for a specific amount of time. If you outlive that period, the policy simply ends and the insurer is no longer obligated to pay a death benefit.

Because most people do outlive their term, premiums tend to be more affordable than with permanent policies. The trade-off? If you still need coverage after the term expires, your age or health changes may make a new policy more expensive.

Related: Term vs. Whole Life Insurance: What’s the Difference?

Do You Still Need Life Insurance After Your Term Ends?

Many people choose a term that aligns with big financial responsibilities—like raising children, paying down a mortgage, or covering college expenses. Ideally, the policy ends around the time those obligations are complete.

But life doesn’t always stick to the plan. Even if your term expires “right on schedule,” you may still want protection. Common reasons for maintaining life insurance include:

• You still owe on your mortgage
• You have other significant debts
• Loved ones still rely on your income
• You want to leave a financial legacy

Keep in mind that life insurance benefits typically pass directly to your beneficiaries, avoiding probate. Since creditors and taxes generally can’t touch a death benefit, maintaining coverage can be an important piece of your long-term estate strategy.

Your Options When a Term Life Policy Expires

If your policy is nearing its expiration date, you have several paths to choose from:

1. Renew Your Existing Term Policy: Most term policies include a guaranteed renewability clause. This allows you to extend coverage year‑to‑year (often without a medical exam) until a certain age—usually 95.

• Pros: No underwriting or health questions
• Cons: Premiums increase each time you renew

2. Buy a New Term Life Policy: You can apply for a new term policy to carry you through the next stage of life.

• Pros: Familiar coverage type, predictable for families
• Cons: Higher premiums due to increased age or health changes

3. Convert Your Term Policy to Permanent Life Insurance: Many insurers allow you to convert some or all of your term coverage into a permanent policy—no medical exam required.

• Pros: Lifetime coverage and potential cash value
• Cons: Higher premiums; some companies limit the amount that can be converted

Related: 5 Considerations to Make before Converting Term Life to Whole Life Insurance

4. Choose Not to Replace the Policy: If you no longer need life insurance, you can let the policy end and redirect the money you were paying in premiums toward other goals—like retirement savings.

• Pros: Frees up monthly cash
• Cons: You lose guaranteed protection

What Should You Do Before Your Policy Expires?

Planning ahead is key. Before your term ends:

1. Evaluate your current financial responsibilities
2. Determine whether loved ones would still be dependent on your income
3. Compare renewal, conversion, and new policy options
4. Shop around and consider your long-term goals

Taking time to assess your needs now will help you make the best decision for your family’s financial security.

Want more? Check out our blog, 5 Types of Life Insurance and When to Consider Them

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