What Happens When Your Term Life Insurance Policy Expires? A Complete Guide

Term life insurance is a popular, affordable way to protect your loved ones for a set period. But what happens when that term ends? Understanding the options available at policy expiration is crucial to avoid gaps in coverage and make informed decisions about your financial protection.

In this article, we’ll explore what happens when your term life insurance policy expires, what choices you have, and how to plan ahead for a smooth transition.

What Does It Mean When a Term Life Policy Expires?

A term life insurance policy provides coverage for a specific number of years—commonly 10, 15, 20, or 30 years.

When the term ends, the policy expires, meaning your coverage ends and your beneficiaries no longer receive a death benefit if you pass away after that date—unless you take action.

Common Options When Your Term Expires

1. Let the Policy Expire

If you choose not to renew or convert, your coverage ends, and you no longer have life insurance protection.

This option may be appropriate if your financial obligations have changed, your family is financially independent, or you have other sources of protection.

Be cautious: Letting coverage lapse without replacement can leave your loved ones financially vulnerable.

2. Renew the Policy

Most term policies offer a renewal option at the end of the term, often guaranteed without a medical exam.

However, premiums at renewal are usually much higher because they’re based on your current age and health.

Renewing can be a good short-term solution but may become expensive over time.

3. Convert to Permanent Life Insurance

Many term policies include a conversion feature, allowing you to convert your term coverage into a permanent life insurance policy (like whole life or universal life) without a medical exam.

This option provides lifelong coverage, cash value accumulation, and additional benefits but usually at a higher premium.

Conversion must typically occur before the term expires or within a specific conversion window.

4. Purchase a New Policy

If renewal or conversion isn’t an option or doesn’t fit your needs, you can apply for a new life insurance policy.

New policies require underwriting, which may include medical exams, health questionnaires, and financial reviews.

Depending on your age and health, new coverage could be more expensive or harder to obtain.

Factors to Consider Before Your Term Expires

Your current health status: If your health has declined, renewing might be cheaper than buying new coverage.
Financial obligations: Do you still need the same amount and length of coverage?
Budget: Are you prepared for higher premiums?
Long-term goals: Do you want coverage only for a limited time or lifelong protection?

Why Planning Ahead Matters

Term life insurance doesn’t provide lifetime protection unless converted or renewed. Waiting until your policy expires to decide can lead to coverage gaps or higher costs.

Start reviewing your policy at least 6 months before expiration to explore options.

Tips to Smoothly Transition From Term Life

Contact your agent early: They can explain your options and help you choose the best path.
Get a health check-up: If your health has improved, it may help qualify for better rates on a new policy.
Compare quotes: Look at multiple insurers to find competitive rates.
Consider permanent insurance: If lifelong coverage or cash value benefits appeal, discuss conversions or new permanent policies.

What If You Miss the Expiration Date?

If you miss renewing or converting your policy on time, your coverage ends.

You may have to start from scratch with a new application and underwriting, which could lead to higher premiums or denial of coverage.

Final Thoughts

Knowing what happens when your term life insurance policy expires empowers you to make smart decisions that protect your loved ones.

At My Term Life Guy, we help you plan ahead, explore your options, and find coverage that fits your needs—whether renewing, converting, or buying new insurance.