What happens when my term life insurance policy ends?
Discover all your options for when your term life insurance expires. Convert, renew, or find a new policy — what will you choose?
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Rachael Brennan
Licensed Insurance Agent
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...
Licensed Insurance Agent
UPDATED: Aug 9, 2024
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
UPDATED: Aug 9, 2024
It’s all about you. We want to help you make the right life insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance company and cannot guarantee quotes from any single company.
Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different life insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
How long should life insurance coverage last? Well, it depends on what type of life insurance you have. Term life insurance offers coverage and benefits for a fixed period, so it does expire at the end of that period. However, if you outlive your term life insurance policy, you have several options for continued life insurance coverage past the insurance expiry period. Read our article on how to buy term life insurance to learn more.
What do I do if I outlive my term life insurance policy?
When a term life insurance policy matures, you have a few choices for what to do next. The life insurance options available will depend on your insurance company, age, health, and family history as well as the term life insurance policy you have.
Below are the options you may have when your term life insurance policy matures.
Renew your term life insurance every year
Most term life insurance policies will allow you to renew the policy year-to-year until you reach age 95. Check with your life insurance company to learn the exact rules for renewable term life insurance.
When you renew your term life insurance by year, your premiums will likely increase. Although you can renew your policy to receive the same coverage and benefits, there’s no guarantee you can keep the same rates.
Renewing term life insurance helps you avoid proving your insurability via 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 buy a new policy.
Convert your term life insurance to a permanent policy
Many term life insurance policies offer a term conversion rider. Term conversion means you can change your term life insurance into a permanent life insurance policy without reapplying or proving your insurability again.
Although term conversion is more common now, the rules for converting a policy vary widely from insurer to insurer. For example, some insurance companies limit the types of permanent life insurance you can convert to, while others place time or age limits on the conversion.
Term conversion can be a great option for policyholders who want to maintain their life insurance without the hassle of finding a new insurer. However, since permanent life insurance works differently from term life insurance, be sure to understand the difference before committing to a new policy fully.
Get a new term life insurance policy
Younger policyholders in good health can keep premiums low by getting a new term life insurance quote and purchasing another term life insurance policy. You can adjust the length of the term or the 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 doesn’t allow term conversion, you can also purchase a new permanent life insurance policy.
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 can be a good solution.
Remember that permanent life insurance is often far more expensive than term life insurance. So be sure the benefits and coverage on your policy are worth the higher premiums.
Read more: Extended-term life insurance
Let your life insurance coverage 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 simply let it expire.
Without a life insurance policy, your loved ones won’t get financial support in the event of your death. Make sure your dependents are taken care of before deciding to let your term life insurance expire.
Read more: Can you reduce the coverage amount on your term life insurance policy?
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Life Insurance Options After a Term Life Insurance Policy Ends
Not sure if switching to permanent life insurance is the best move for you and your family? Here’s a quick look at different life insurance types you might consider when your term life insurance policy ends:
- Whole life insurance. Whole life offers a guaranteed death benefit and rate of return. You’ll build cash value as you pay your premiums, which you can apply to your premium payments or borrow against in some instances. You can learn more about term life insurance vs. whole life insurance in this article.
- Universal life insurance. For more flexibility in your benefits, consider universal life insurance. You’ll have more freedom to change your benefits or premiums throughout the policy. However, your interest rates will mirror general interest rate trends.
- Final expenses insurance. If you don’t need a death benefit, final expenses insurance might be sufficient. Sometimes called burial insurance, it covers funeral costs upon your death. Rates are lower, but your loved ones won’t get a payout beyond burial expenses. You can read more about burial insurance for seniors in this article.
Whole vs. universal life insurance work differently from term life insurance. If you decide to purchase a permanent life insurance policy once your term policy matures, take the time to understand the details to give you and your loved ones the best possible benefits.
Understanding Life Insurance Policy Options and Contacts
Other notable insurance providers include Chubb Life Insurance, which is often reviewed in Chubb Insurance Consumer Reports Reviews. For specific inquiries, such as finding the Chubb life insurance Scotiabank phone number, or understanding their Chubb LifeTime Benefit Term you can reach out directly to their customer service.
Understanding the conversion options for your life insurance policy is also important. conversion option for life insurance allows policyholders to switch from a term to a permanent policy. It’s helpful to be aware of the conversion option expiration date and the conversion period for life insurance.
If you’re considering converting a term life insurance policy to a permanent one, be sure to evaluate the cost of converting from term to permanent life insurance. For those with combined term insurance for husband and wife, it’s beneficial to explore companies that buy term life insurance policies if you’re looking to sell your policy. Meanwhile, Coventry direct sells term life policies and offers options reviewed in Coventry insurance reviews, which can guide your decision-making process.
Exploring Various Life Insurance Policy Types and Contacts
When navigating the world of life insurance, it’s essential to understand the different policy types and their implications. One important consideration is converting a term policy to a permanent policy, which allows policyholders to switch from a term life insurance plan to a permanent one. This decision often depends on understanding the difference between term and whole life insurance policies, as well as the meaning of extended term in the context of extended-term options.
For example, extended-term life insurance offers coverage beyond the initial term, while the extended-term nonforfeiture option ensures that some benefits continue even if premiums are not paid. Additionally, it’s valuable to be aware of whether decreasing term life insurance is no longer available, as this can affect your choice of coverage.
When seeking further information, having reliable contact numbers can be beneficial. For instance, if you need details about Columbia Life Insurance, contacting their support via the Columbia Life Insurance phone number can provide direct assistance. For broader comparisons, consider the perspectives of financial experts like Dave Ramsey, who often discusses the difference between term insurance and health insurance and debates term vs. whole life insurance.
Reviews and insights can also be garnered from various sources, such as Farm Bureau term life insurance or Family First life’s negative reviews versus Family First Life Prolific. Understanding these distinctions and having the right contacts is crucial for effectively managing your life insurance needs, from finding a life insurance policy to navigating options like final expense life insurance and decreasing term life insurance.
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Understanding Limited Payment Whole-Life and Renewable Term Life Insurance Policies
When considering life insurance options, it’s important to understand the differences between various types of policies. A limited payment whole-life policy provides coverage with a set payment period, offering financial protection for the insured’s entire lifetime while allowing for a finite number of premium payments. This type of policy can be advantageous for those who wish to complete their payments in a specified period, such as 10 or 20 years, while securing lifelong coverage without worrying about continuing payments into retirement.
On the other hand, a renewable term life insurance policy can be renewed at the end of each term. This type of policy offers coverage for a set number of years, typically ranging from 1 to 30 years, and provides the flexibility to extend the coverage period without undergoing a new medical examination. This can be particularly useful for individuals who anticipate changing insurance needs or who may want to ensure continued coverage as they age, despite the potential increase in premium rates over time. Both policy types offer distinct benefits and can be tailored to meet varying financial and protection needs.
Case Studies: What happens when my term life insurance policy ends?
Case Study 1: Renewing the Policy
When Sarah’s term life insurance policy was about to expire, she decided to renew it on a year-to-year basis. Although her premiums increased, she was able to maintain the same coverage and benefits.
Renewing the policy allowed Sarah to avoid proving her insurability again, which was beneficial as she had developed health conditions during the term of her initial policy.
Case Study 2: Converting to Permanent Life Insurance
John had a term life insurance policy that was nearing its expiration date. He opted to exercise the conversion feature offered by his insurance company and converted his policy into a permanent life insurance policy without the need for a medical exam or proving insurability again.
While the premiums for the permanent policy were higher, John wanted to ensure he had lifelong coverage without the hassle of finding a new insurer.
Case Study 3: Purchasing a New Term Life Insurance Policy
After her term life insurance policy expired, Emily, who was still relatively young and healthy, decided to purchase a new term life insurance policy. By getting quotes and comparing different options, she was able to adjust the length of the term and coverage benefits to keep her premiums affordable.
Buying a new term life insurance policy allowed Emily to continue protecting her dependents until they became financially independent.
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The Final Word on What To Do When Term Life Insurance Ends
When your term life insurance policy expires, you have plenty of options to maintain coverage in the event of your death. Talk to your insurer about the options for your existing policy and get information about other types of types of term life insurance too.
Frequently Asked Questions
At what age do life insurance policies expire?
Life insurance policies do not necessarily expire at a specific age. Instead, the expiration depends on the type of policy. Term life insurance expires at the end of the term period, which can be set for specific durations like 10, 20, or 30 years. Permanent life insurance policies, like whole life or universal life, remain active as long as premiums are paid and the policy is in force.
At what age do you no longer need life insurance?
The need for life insurance varies based on individual circumstances. Many people consider reducing or canceling their life insurance policy when they reach retirement age, have sufficient savings, or no longer have dependents. However, it is important to evaluate your personal financial situation and goals when making this decision.
Can term life insurance premiums increase?
Generally, term life insurance premiums remain fixed throughout the policy term. However, some policies might have increasing premiums after each term period or renewal. It’s important to check the terms of your specific policy to understand how premiums may change over time.
Can we extend the term of a LIC policy?
The ability to extend the term of a Life Insurance Corporation (LIC) policy depends on the policy’s terms and conditions. Some policies may offer renewal options, while others may not. Contacting your LIC representative or reviewing your policy details will provide specific information on extensions.
Can you get money back from a lapsed life insurance policy?
Typically, if a life insurance policy lapses due to non-payment of premiums, you will not receive money back. However, some policies offer a grace period or reinstatement options where you might be able to restore the policy and potentially receive benefits.
Can you have two life insurance policies at the same time?
Yes, you can have two or more life insurance policies simultaneously. Many people do this to increase their coverage or to address different financial needs. Be sure to consider the total coverage amount and how it fits with your financial plans.
Can you have life insurance with more than one company?
Yes, it is possible to have life insurance policies with multiple companies. This approach can help you diversify your coverage, manage costs, or meet specific needs that one policy might not fully cover.
Your life insurance quotes are always free.
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Rachael Brennan
Licensed Insurance Agent
Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.
