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What Happens When Term Life Insurance Expires? Renew, Convert or Replace
An expiring term policy isn't the end of the road -- but what happens next depends on your specific policy and current situation.
When a term life insurance policy reaches the end of its term, coverage simply ends unless you take action. What happens next -- and what it costs -- depends on your specific policy's provisions and your health and age at that point.
Renewal is sometimes available, usually at a higher cost
Some term policies include an option to renew annually after the initial term ends, without new health questions -- but the premium at renewal is based on your current age, and is typically substantially higher than your original term rate.
Conversion to permanent coverage, where the policy allows it
Many term policies include a conversion privilege, letting you convert some or all of the coverage to a permanent policy -- generally without new health questions -- within a specific window defined by the policy. This can be valuable if your health has changed since you originally applied.
Applying for new coverage is also an option
You can apply for a brand-new policy instead of renewing or converting, but a new application means new underwriting -- current health and age both factor in, and a health change since your original policy could affect what's available or what it costs.
Do you get your money back?
A standard term policy doesn't refund premiums if you outlive it -- you were paying for protection during the term. The exception is a return-of-premium term policy or rider, which refunds premiums if you outlive the term, in exchange for a higher price from the start. Your policy documents say which you have.
Can you extend a term policy?
Often, in effect. Many level-term policies let coverage continue after the level period, but the premium then resets higher and typically rises every year until a maximum age. That can bridge a short gap, but for longer needs converting or buying new coverage is usually worth comparing.
Why timing matters
Reviewing your options before your term actually ends -- rather than after -- gives you the most flexibility, especially if conversion is time-limited under your specific policy.
Your next step
Select what describes your situation to see the most relevant next step.
Also worth a look:
Common questions
Can I convert my term policy without new health questions?
Many term policies include this option within a specific window, generally without new medical underwriting -- but this depends entirely on your specific policy's conversion provisions, worth confirming directly.
Is it cheaper to renew or to apply for a new policy?
It depends on your current health and age. Renewal avoids new underwriting but is often priced higher based on age alone; a new application could be cheaper if your health is still good, or more difficult if it has changed. Comparing both is worth doing before your term ends.
Does life insurance expire?
Term life does: it covers a set period (like 10, 20 or 30 years) and then ends unless renewed or converted. Whole life is designed to last your lifetime as long as premiums are paid. Any policy can lapse if premiums stop after the grace period.
What happens to term life insurance at the end of the term?
Coverage ends, and no death benefit is paid after that date unless the policy continues on renewal terms. Some policies keep going automatically at a much higher annual premium; your policy's renewal and conversion sections explain exactly what yours does.
What should I do when my term life insurance is expiring?
Start a few months before the end date: find your conversion deadline, ask what renewal would cost, and compare that with a new policy at your current age and health. Keep the old policy in force until any replacement is approved.
Do I get money back when my term life insurance expires?
Only if you have a return-of-premium policy or rider. A standard term policy doesn't refund premiums at the end of the term.
What if my health has changed since I bought my original policy?
That's exactly the kind of situation worth reviewing directly -- conversion (if available) generally doesn't require new health questions, which can matter a lot if a new application would now be more difficult.
Questions are easier by phone.
Call 855-367-1095 to talk through your situation with licensed insurance help.
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Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.