Yes, term life insurance expires at the end of your term
Term life insurance covers you for a set number of years — typically 10, 20, or 30 years. When that term ends, your coverage stops. You are no longer insured, and your beneficiaries would not receive a death benefit if you died after the policy expired. The insurance company does not automatically renew you or extend your coverage unless you take action.
What happens next depends on the type of term policy you have and the options your policy includes. Some policies let you renew or convert to permanent coverage without a medical exam. Others require you to reapply from scratch, which means a new medical underwriting process and likely higher premiums based on your current age and health. If you do nothing when your term ends, you straightforward have no life insurance.
Key Takeaways
- Your term life policy stops providing coverage on the expiration date listed in your policy documents — there is no automatic extension.
- Many term policies include a renewal option that lets you extend coverage for another term without a medical exam, though premiums will be higher.
- A conversion option lets you switch to permanent life insurance (whole life or universal life) without proving your health again, but permanent coverage costs significantly more.
- If you let your policy lapse and later want coverage again, you will need to reapply and pass medical underwriting, which may be denied or priced higher based on age or health changes.
Renewal versus conversion: the two main options when your term ends
When your term is about to expire, your insurance company will send you a notice — usually 30 to 60 days before the end date — explaining your options. The two most common are renewal and conversion.
Renewal means extending your current term policy for another period, usually 5 or 10 years. You do not need a medical exam. However, your premium will jump significantly because you are now older. A 20-year term policy taken out at age 35 might cost $30 per month; renewing it at age 55 for another 10 years could cost $80 to $120 per month, depending on your health and the insurer. Some policies have a limit on how many times you can renew — check your policy documents for that cap.
Conversion means switching your term policy to a permanent policy (whole life, universal life, or variable universal life). You do not need a medical exam for conversion either. The advantage is that permanent coverage lasts your entire life as long as you pay premiums. The disadvantage is cost: permanent policies cost 5 to 15 times more than term. A $500,000 whole life policy at age 55 might cost $400 to $600 per month, compared to $80 to $120 for a renewed term policy. Conversion is usually only worth considering if your health has declined and you cannot get term coverage at a reasonable price elsewhere.
What to do if you let your policy lapse
If your term expires and you do not renew or convert, you have a brief window — usually 30 to 60 days, depending on your state and insurer — to reinstate the policy without reapplying. During this grace period, you can pay the overdue premium and your coverage resumes. After the grace period ends, reinstatement is no longer an option.
If you miss the reinstatement window and want coverage again later, you will need to explore for a new policy. This means a full medical underwriting process: health questionnaire, possibly a medical exam, and a decision based on your current health and age. If your health has worsened — you developed diabetes, had a heart attack, or started smoking — a new policy may be denied or offered at a much higher rate. Some insurers will decline you entirely if the risk is too high.
This is why letting a policy lapse is usually a mistake. If you think you might not need coverage in the future, it is cheaper to let it expire naturally than to let it lapse and then try to get back in later.
How to plan ahead so your coverage does not disappear
The best approach is to think about your coverage needs before your term ends. Ask yourself: Do I still need life insurance? How much? For how long?
If you have dependents who rely on your income, you probably still need coverage. If your children are grown and independent, your mortgage is paid off, and you have substantial savings, you may not. If you are unsure, a financial advisor or your insurance agent can walk through your situation.
Once you decide, act before your policy expires. Do not wait for the expiration notice. Contact your insurance company or agent 90 days before the end date and ask about renewal and conversion options. If you want to shop for a new policy elsewhere, do that while your current policy is still active — you can explore for new coverage and compare rates before deciding whether to renew your existing policy.
If your health has changed and you are worried about being denied new coverage, conversion to permanent insurance through your current insurer is usually your safest option, even though it costs more. You are may provide to be accepted without a medical exam.
may provide renewable versus non-renewable policies
Not all term policies include a renewal option. Some are may provide renewable, meaning the insurer must offer you the chance to renew at the end of each term, though at a higher premium. Others are non-renewable, meaning once the term ends, you cannot renew — your only option is conversion or explore for a new policy elsewhere.
When you buy a term policy, the contract will state whether it is may provide renewable. Most modern term policies sold to individuals are may provide renewable, but some older policies or policies sold through employers may not be. Check your policy documents or call your insurance company to confirm. If your policy is not may provide renewable and your term is ending soon, conversion may be your only option to keep coverage without reapplying.
The cost of waiting until your term ends to decide
Waiting until your policy expires to figure out what to do puts you in a weak position. If you decide you want new coverage, you have already aged another year or more, and your health may have changed. If you want to renew your current policy, you are locked into your current insurer's rates with no ability to shop around.
The better approach is to review your coverage needs one to two years before your term ends. If you want to switch insurers or get a larger benefit amount, explore for a new policy while your current one is still active. Once you are approved for new coverage, you can let your old policy expire or convert it if the new policy does not work out. This gives you options and prevents you from being stuck with renewal as your only choice.
Frequently Asked Questions
Can I renew my term policy after it expires if I did not renew before the expiration date?
No. Renewal must happen during the term or within a short grace period after expiration — usually 30 to 60 days. Once that window closes, renewal is no longer an option. You can still convert to permanent insurance if your policy includes that option, or explore for a new policy, but you will need to pass medical underwriting again.
Will my premiums stay the same if I renew my term policy?
No. Renewal premiums are based on your age at the time of renewal, not your age when you originally bought the policy. A policy renewed at age 55 will cost much more than the same policy cost at age 35. The exact increase depends on your age, health, and the insurer's rates.
What if I convert to permanent insurance and then cannot afford the premiums?
You can stop paying and let the policy lapse, just as with any insurance. However, permanent policies often have a cash value component — money you have paid in that builds over time. If you stop paying, the insurer may use that cash value to keep the policy in force for a limited time, or you can surrender the policy and receive the remaining cash value. Check your policy documents for the exact rules.
Is it better to renew my term policy or buy a new one from a different company?
That depends on your health and the rates you can get elsewhere. If your health is good, shopping around may get you a better rate than renewal. If your health has declined, renewal through your current insurer (which does not require a medical exam) is usually cheaper than explore elsewhere. Get quotes from other insurers before deciding.
What happens to my beneficiaries if I die after my term policy expires?
They receive nothing. Once your policy expires and you have not renewed or converted it, there is no death benefit. This is why it is important to renew, convert, or get new coverage before your term ends if you still need life insurance.