FAQ

What happens when my term life insurance policy ends? | QuickQuote®

Does life insurance expire? It depends on the type of life insurance you have. Term life insurance offers coverage and benefits for a fixed period, so it expires at the end of that period. however, if you outlive your term life insurance policy, you have several options for continuing life insurance coverage beyond the expiration period of the insurance.

what do i do if i outlive my term life insurance policy?

When a term life insurance policy expires, you have a few choices about what to do next. The life insurance options available will depend on your insurance company, age, health and family history, as well as the type of term life insurance policy you have.

Reading: What age does term life insurance expire

Below are the options you may have when your term life insurance policy expires.

renew your term life insurance every year

Most term life insurance policies will allow you to renew the policy year after year until you turn 95. Check with your life insurance company for the exact rules for renewable term life insurance.

When you renew your term life insurance annually, your premiums will likely increase. Although you can renew your policy to receive the same coverage and benefits, there is no guarantee that you will be able to maintain the same rates.

Renewing term life insurance helps you avoid proving your insurability through 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 purchase a new policy .

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turn your term life insurance into a permanent policy

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Many term life insurance policies offer a term conversion clause. Term conversion means you can change your term life insurance to permanent life insurance without reapplying or testing your insurability again.

Although term conversion is more common now, the rules for converting a policy vary widely from one insurer to another. For example, some insurance companies limit the types of permanent life insurance you can convert to, while others set time or age limits for conversion.

The term conversion can be a great option for policyholders who want to keep their life insurance without the hassle of finding a new insurer. however, since permanent life insurance works differently than term life insurance, make sure you understand the difference before fully committing to a new policy.

get a new term life insurance policy

Younger policyholders in good health can keep premiums low by purchasing another term life insurance policy. You can adjust the term length or 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 does not allow term conversion, you can also purchase a new permanent life insurance policy.

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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 may be a good solution.

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Remember that permanent life insurance is often much more expensive than term life insurance. so make sure your policy benefits and coverage are worth the higher premiums.

allow your life insurance coverage to 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 just let it expire.

Without a life insurance policy, your loved ones will not receive financial support in the event of your death. Make sure your dependents are well taken care of before you decide to let your term life insurance expire.

life insurance options after a term life insurance policy ends

Not sure if switching to permanent life insurance is right for you and your family? Here’s a quick look at the different types of life insurance you might consider when your term life insurance policy ends:

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